UK Wages Expected to Feed Pressure for Bank of England Hikes
- Bloomberg survey points to lingering risks on prices and wages
- Investors betting on one or two more quarter-point increases
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Britain’s inflation fever may be starting to break, but data due out this week is expected to show the economy has more cooling to do before the Bank of England can change course on interest rates.
Official statistics are slated to show Tuesday that wages accelerated to the fastest pace on record in July, pushing up inflation in the services sector, according to a Bloomberg survey of economists. That will likely temper optimism about a subsequent report Wednesday that is forecast to show consumer price pressures eased to the lowest level in almost 1 1/2 years.