UK wage growth picks up in January but fails to keep pace with inflation

The strongest pay growth was enjoyed by workers in the City of London and the wider finance and property industries. Photograph: Neil Hall/EPA

UK wage growth picked up in January as job vacancies hit a new record high, but pay failed to keep pace with the highest inflation rate for three decades.

The Office for National Statistics said the annual growth rate for average total pay, including bonuses, increased to 4.3% in the three months to December, up from a rate of 4.2% in the three months to November.