UK wages register biggest rise in five years, shows ONS report

Salaries in Britain have grown at the highest levels in five years, a report issued by the Office for National Statistics has revealed.

UK wage growth has hit a high not seen for five years, according to new figures released for the three months to May 2015 from the Office for National Statistics (ONS).

Average weekly earnings were up 3.2 per cent during the period, slightly below the 3.3 per cent that had been predicted in a poll of economists conducted by Reuters.

Employment figures, although registering a slight dip, showed that a total of 30.98 million people were in work in the three months ended 31 May.

Chief economist at Markit Chris Williamson described the increase in private sector pay growth is something that "would normally start to worry policymakers" and encourage them to tighten policy to stop spiralling wages.

Nick Palmer, statistician at the ONS, said the figures could indicate the increases seen in the labour market over the past three years are beginning to tail off, but added it is too early to draw any concrete conclusions.

UK interest rates set for increase

Yesterday, prior to the wage increase report being released, Bank of England governor Mark Carney noted to the Parliament’s Treasure Committee that a rise in interest rates in Britain may be imminent.

"The point at which interest rates may begin to rise is moving closer,” said Mr Carney.

He added, "Once rates begin to adjust, we expect for those adjustments to be at a gradual pace and to a limited extent.”