UK wages soon to catch up with inflation, Bank of England survey finds

Report indicates wages will rise above inflation in all sectors except Brexit-hit construction

British workers are set for the biggest annual pay rise in a decade, according to forecasts from the Bank of England's agents, as the rising minimum wage and staff shortages finally begin to lift wages above inflation.

Companies expect to increase pay by 3.1% in 2018, compared with 2.6% last year, according to the latest survey of private-sector employers by the Bank's network of agents across the country. A total of 368 businesses responded to the survey carried out between late November and mid-January, accounting for 845,000 UK employees.