The Bank of England has warned that economic uncertainty caused by the Brexit vote will knock 5% off UK wage growth by the year end.
Mark Carney, the bank’s governor, said British workers had already suffered a loss in earnings growth of 3.5% - compared with pre-referndum forecast inflation is taken into account, and would see that loss swell to 5% by the end of the year as wages growth remained below inflation.
The UK also had the strongest two quarters of productivity growth since the recession of 2008 after output per hour rose 0.8%
Yet unemployment increased by the largest amount in five years and employment and productivity growth slipped back. Wages have also played catch-up from a virtual freeze in the aftermath of the Brexit vote increased from a low point last year when growth slumped to 1.6%.
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