FX.co ★ UK Wage Growth Cools in December as Average Earnings Slip to 4.2%

Average earnings growth, including bonuses, in the United Kingdom slowed in December 2025, with the indicator easing to 4.2% from 4.6% in November 2025. The latest figures, updated on 17 February 2026, point to a moderation in wage pressures at the end of the year.

The deceleration from November’s 4.6% pace suggests that pay growth is losing momentum, a development closely watched by market participants assessing the trajectory of household incomes and potential inflationary pressures. While earnings are still rising, the softer December reading may be interpreted as an early sign of cooling in the labour market compared with previous months.