FX.co ★ UK Wage Growth Softens in May as Average Earnings Index Slips to 4.3%

Wage growth in the United Kingdom eased slightly in May 2026, with the Average Earnings Index including bonuses ticking down to 4.3%, compared with 4.4% recorded in April 2026. The latest figures, updated on 21 July 2026, point to a marginal cooling in pay pressures across the labour market.

While the slowdown is modest, the shift from 4.4% to 4.3% will be closely watched by investors and policymakers assessing the balance between wage growth, inflation dynamics and the Bank of England’s interest rate path. Even with the slight decline, earnings growth remains elevated by historical standards, suggesting that wage trends continue to play a key role in the broader UK economic outlook.