FX.co ★ UK Wage Growth Cools as Average Earnings Index Eases to 3.9% in July

Average wage growth in the United Kingdom slowed in July 2026, with the Average Earnings Index including bonuses easing to 3.9%, down from 4.2% recorded in June 2026.

The latest reading, updated on 15 September 2026, indicates a moderation in pay pressures across the economy. The deceleration from June’s pace suggests that wage dynamics may be losing some momentum, a development that could be closely watched by policymakers and markets assessing the outlook for inflation and interest rates.

While earnings continue to grow, the softer July figure may signal a gradual cooling in the labour market after a period of stronger wage increases, potentially easing some of the pressure on living costs and corporate margins in the months ahead.