The pace of basic wage growth has fallen back for the first time since January, according to official figures being closely watched by the Bank of England.
Data from the Office for National Statistics (ONS) showed that average basic wages rose by 7.8% during the three months to August compared to a year earlier.
That was down slightly from a revised rate of 7.9% last month.
Separate figures for average weekly earnings, which include bonus payments, showed a marked easing to 8.1% from 8.5% but that is believed to reflect the impact of public sector awards paid in June.
The data may provide some comfort to policymakers at the Bank who are worried that high wage growth risks stoking inflation which is currently running at 6.7%.
The concern is that any boost to household spending power, because wage growth is running at a higher pace, will bolster demand and place upwards pressure on prices.
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BoE: ‘We cannot be complacent’
The most glaring was a steeper easing in inflation than had been anticipated.
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But it could yet impose a further 0.25 percentage point increase in November if it fails to see inflation continuing to slow.
The figures for September are due to be released on Wednesday.
Market expectations of a rate rise in November fell back in the wake of the ONS report.
Refinitiv data showed 77% of participants believed there would be no increase when the MPC’s next decision is announced on 2 November. The figure was closer to 70% before the data was released.
The wider ONS figures showed the number of people in payrolled employment fell by 11,000 in August.
It also reported that the number of job vacancies in the three months to September was 988,000, down from 998,000 in the three months to August.
Unemployment figures and other related labour market data will not be published until next week after the ONS said that it needed more time to take account of low response rates.
Kemi Badenoch has not ruled out forming coalitions at a local level with Reform after the council elections next week.
Speaking to Sunday Morning with Trevor Phillips, the Conservative leader did however categorically rule out a pact with Nigel Farage’s party on a national level.
“I am not going into any coalition with Nigel Farage… read my lips,” she said.
However, she did not deny that deals could be struck with Reform at a local level, arguing that some councils might be under no overall control and in that case, “you have to do what is right for your local area”.
“You look at the moment, we are in coalition with Liberal Democrats, with independents,” she said. “We’ve been in coalition with Labour before at local government level.
“They [councillors] have to look at who the people are that they’re going into coalition with and see how they can deliver for local people.”
She added: “What I don’t want to hear is talks of stitch-ups or people planning things before the results are out. They have to do what is right for their communities.”
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A total of 23 councils are up for grabs when voters go to the polls on Thursday 1 May – mostly in places that were once deemed Tory shires, until last year’s general election.
It includes 14 county councils, all but two of which have been Conservative-controlled, as well as eight unitary authorities, all but one of which are Tory.
Ms Badenoch has set expectations low for the Tories, suggesting they could lose all the councils they are contesting.
The last time this set of councils were up for election was in 2021, when the Conservative Party was led by Boris Johnson who was riding high from the COVID vaccine bounce.
This breaking news story is being updated and more details will be published shortly.
Counter-terrorism police are investigating after an incident involving a crossbow and a firearm left two women injured in Leeds.
Police were called to Otley Road at 2.47pm on Saturday to reports of a “serious incident involving a man seen with weapons”, West Yorkshire Police said.
Officers arrived at the scene to find two women injured – and a 38-year-old man with a self-inflicted injury. All three were taken to hospital, with the man held under arrest, but their injuries are not believed to be life-threatening.
“Two weapons have been recovered from the scene, which were a crossbow and a firearm,” Counter Terrorism Policing North East said in a statement.
The incident happened on the ‘Otley Run’ pub crawl, with one venue saying it was closed for the evening due to “unforeseen circumstances”.
Image: Officers guard one of the crime scenes
Image: Officers inside the cordon in Leeds
Counter Terrorism Policing’s statement added: “Due to the circumstances surrounding the incident, Counter Terrorism Policing North East have taken responsibility for leading the investigation with the support of West Yorkshire Police.
“Extensive enquiries continue to establish the full circumstances and explore any potential motivation.”
Home Secretary Yvette Cooper described it as a “serious violent incident” and said she was being kept updated by police.
“Thank you to the police and emergency services for their swift response,” she said. “My thoughts are with the victims and all those affected by this attack.”
This breaking news story is being updated and more details will be published shortly.
Wrexham AFC have been promoted for the third season in a row.
The North Wales-based side has gone from the National League to the Championship in just three seasons, under its Hollywood owners Ryan Reynolds and Rob McElhenney.
Wrexham were second in the table and had a run of eight games unbeaten ahead of their match against Charlton Athletic on Saturday, which they won 3-0.
Image: Wrexham’s James McClean lifts the League One trophy. Pic: PA
Image: Wrexham’s Dan Scarr celebrates with the fans on the pitch after Wrexham won promotion to the Championship. Pic: PA
It is the first time any club has been promoted for three consecutive seasons within the top five tiers of English football.
The third oldest association football club in the world, Wrexham AFC was bought by Reynolds and McElhenney in 2020, and has since been the subject of a Disney+ documentary, Welcome To Wrexham.
Reynolds, wearing a Wrexham sweatshirt, and McElhenney were pictured celebrating each goal, and after the game, as the fans came onto the pitch at the SToK Cae Ras (Racecourse Ground) to celebrate the victory with the players.
Image: Wrexham co-owners Rob McElhenney (L) and Ryan Reynolds and Ryan’s wife Blake Lively, before the match. Pic: PA
Both stars came onto the pitch after the supporters returned to the stands.
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Speaking to Sky Sports, McElhenney praised those behind the scenes, referring to “so many that don’t get the credit they deserve, people who aren’t talked about”.
Reynolds said bringing success back to the club “seemed like an impossible dream” when they arrived in North Wales in 2020.
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Image: Wrexham’s Sam Smith celebrates in front of the fans after Wrexham won promotion to the Championship. Pic: PA
He put the three promotions down to “the coaching staff, the greatest dressing room” and an “all for one, one for all” attitude throughout the club, adding he was “speechless with their commitment and their emotion”.
As for the mouth-watering prospect of another promotion to the promised land of the Premier League, the pair agreed it was “for tomorrow”, before ending the interview with a joint mic-drop.
Veteran striker Steven Fletcher said, “as soon as I came to this club, I knew it was something special. We want to go again. We’ll reset in the summer, take a break and go again”.