UK regular pay rises faster than inflation, easing pressure on living costs

Wages outpace inflation for first time in almost two years, driven by growth in City of London

• Tories consider saving 1bn with lower state pension rise

Average wage growth in the UK rose above inflation in August for the first time in almost two years, according to official figures, easing some of the pressure on workers amid the cost of living crisis.

The Office for National Statistics said annual growth in regular pay, excluding bonuses, was 7.8% in the three months to August, among the fastest growth rates on records dating back to 2001.