UK total wage growth slows to 3.9 percent as inflation rises to 3.1 percent

The short version

• UK average total earnings growth, including bonuses, fell to 3.9% in the three months to July, down from 4.1% in the prior period.[The Guardian]
• Pay growth excluding bonuses held steady at 3.5%, while unemployment remained unchanged at 4.9%.[The Guardian]
• Consumer price index inflation rose to 3.1% in August, up from 2.9% in July.[BBC News]
• Investors and analysts expect the Bank of England to maintain its main interest rate at 3.75%.[BBC News]

Key facts

• Average growth in total earnings, including bonuses, slowed to 3.9% in the three months to July, down from 4.1% in the three months to June.[The Guardian]
• Regular pay growth excluding bonuses remained unchanged at 3.5%.[The Guardian]
• The UK unemployment rate remained stable at 4.9%.[The Guardian]
• UK CPI inflation increased to 3.1% in the year to August 2026 from 2.9% in July.[BBC News]
• The Bank of England's interest rate decision is expected to leave the benchmark rate unchanged at 3.75%.[BBC News]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• UK pay growth slows to 3.9% before crunch interest rates decisionThe Guardian - World
• What's happening to UK interest rates and what does it mean for mortgages?BBC News - Business