Wage growth was 7.3% from March to May in blow to Bank of England

BREAKING: Shock tick up for wage growth to 7.3% in blow for Bank of England

Wage growth was driven in April by the rise in statutory minimum wage levels and the start of the new financial year which typically sees many pay reviews kick in.Higher grocery wages a drag on food inflation, in reaction to the wage spike and wider evidence that higher prices were becoming engrained in the economy.

By making borrowing more expensive, it hopes that the pace of price growth will come back to more normal levels. The bank has an inflation target of 2%. The consumer prices index measure of inflation currently stands at 8.7%. A majority of financial market participants currently expect a further 0.5 percentage point rate increase at the monetary policy committee's next meeting early next month.

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