The UK's unemployment rate increased slightly to 4.3 percent in the three months ending in July, while wage growth remained at an all-time high, according to official data

released on Tuesday.

The Office for National Statistics reported that unemployment had been at 4.2 percent in the previous quarter, ending in June.

Average regular earnings growth, excluding bonuses, remained robust at 7.8 percent for the three months ending in July.

Chancellor of the Exchequer, Jeremy Hunt, reacted to the data by acknowledging the sustained high wage growth. He pointed out that this was partially due to one-off payments to public sector workers but emphasized the need to adhere to their plan to reduce inflation.

At the beginning of 2023, Prime Minister Rishi Sunak expressed his hope to cut UK annual inflation in half, particularly when it was above 10 percent. However, it still stands at 6.8 percent, the highest among G7 nations.

Ashley Webb, a UK economist at the Capital Economics research group, noted, "The tightness of the labor market continued to ease in July." However, the ongoing wage growth is likely to raise concerns at the Bank of England, supporting the view that the Bank may raise interest rates further, from the current 5.25 percent to a peak of 5.5 percent, at its upcoming regular policy meeting next week. Photo by Prime Minister’s Office, Wikimedia commons.