Figures expected to show wage growth at five-year high

Relief for squeezed households tempered by concerns that stronger pay growth could have knock-on effects for inflation and warrant an interest rate rise

Official figures are expected to confirm that wage growth continues to pick up in the UK and has hit a five-year high, bringing relief to households after years of squeezed living standards.

Economists polled by Reuters have pencilled in a 3.3% annual rise in average pay packets during the three months to May. At the same time, they expect unemployment to be held at a seven-year low of 5.5%.