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

United Kingdom wage growth lost some momentum at the start of the year, with the Average Earnings Index including bonuses easing to 3.9% in January 2026. The latest reading, updated on 19 March 2026, marks a slowdown from the 4.2% recorded in December 2025.

The moderation in pay growth suggests some cooling in wage pressures across the UK labour market, a development likely to be closely watched by investors and policymakers assessing the inflation and interest rate outlook. While earnings continue to rise, the softer pace may signal that the peak in wage-driven inflationary pressure is now behind the economy.