Pay growth in Great Britain falls below 5%, making interest rate cut more likely

Vacancies fell back almost to the long-term average before the onset of the Covid-19 pandemic. Photograph: Victoria Jones/PA

The growth in employee annual earnings in Great Britain has fallen below 5% for the first time in more than two years, closing the gap between wages and inflation and increasing the likelihood of a further cut to interest rates.

Staff pay, excluding bonuses, rose by 4.9% in the three months to August compared with the same period a year earlier, down from 5.1% in the three months to July, according to the Office for National Statistics (ONS).