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Pay growth has picked up for the first time in more than a year, the latest official figures show.
Regular pay grew at a faster-than-expected annual pace of 5.2% between August and October, the Office for National Statistics (ONS) said, with wages continuing to grow faster than prices.
Analysts say the latest figures mean the Bank of England will almost certainly not cut interest rates when it meets this week.
The ONS data also suggested the jobs market is weakening, with job vacancies falling again and a drop in the number of people on payrolls.
The unemployment rate was unchanged at 4.3%, although there are questions over the reliability of the jobs figures from the ONS due to problems with gathering the data.
“After slowing steadily for over a year, growth in pay excluding bonuses increased slightly in the latest period driven by stronger growth in private sector pay,” said Liz McKeown, director of statistics at the ONS.
Private sector pay grew at an annual pace of 5.4%, the ONS said, while in the public sector it was 4.3%.
The Bank of England watches the pay and jobs data closely when making decisions on interest rates.
It has cut rates twice this year as inflation – which measures the rate at which prices are increasing – has fallen.
The Bank meets to discuss rates again this week, but it is not expected to make a further cut given the strength in pay growth.
“The latest UK jobs report provides yet more justification, if any were needed, for the Bank of England to keep rates on hold at its meeting this week,” said James Smith, developed markets economist at ING.
Mr Smith noted that the jump in wage growth was entirely down to the private se
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