Pay rises outstrip inflation by most for two years

Wages have risen faster than inflation by the most for two years, but there are signs the jobs market is starting to weaken.

Regular pay rose at an annual rate of 7.7% between July and September, faster than price rises over the same period.

However, official figures showed that wage rises are starting to slow in some industries.

And while the UK’s unemployment rate was unchanged at 4.2%, the number of job vacancies has continued to fall.

That was the 16th month in row it had fallen, although the total number of vacancies remains well above pre-pandemic levels.

For nearly two years, prices of goods such as food and energy have been rising much faster than wages, putting pressure on household finances.

Inflation has now started to ease, although consumers are increasingly being squeezed by higher interest rates which have driven up the cost of mortgages and other loans.

The latest figures show that regular pay – which excludes bonuses – rose by 1% in the three months to…