Falling UK inflation will ease pressure for high pay awards, says thinktank

Strong growth in earnings has been driven by increases in cost of living, says Resolution Foundation

Bank of England concerns over the high level of pay awards are likely to be eased in the coming months as wage settlements fall in response to a tumbling annual inflation rate, a thinktank has said.

The Resolution Foundation said recent strong growth in earnings was primarily caused by a sharp increase in the cost of living, with workers trying to prevent their living standards being eroded.