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The U.K. Rate-Increase Argument Just Got Stronger
Wage measure reaches level needed to push inflation back to target
The Bank of England in London.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
The inflationary effect that Bank of England officials have been hoping for may be finally arriving.
Data released Thursday showed unit labor costs rose an annual 2.2 percent in the second quarter, the fastest pace since in almost three years and up from 0.3 percent in the previous three months.
The pace is also about the level that BOE Deputy Governor Ben Broadbent has said is needed to drive inflation -- currently lodged at zero because of falling oil prices -- back up to the central bank's goal.