Average wage growth in the United Kingdom cooled in June 2026, with the Average Earnings Index including bonuses edging down to 4.1%, from 4.3% recorded in May 2026. The latest figures, updated on 18 August 2026, point to a modest easing in pay pressures across the economy.
The slowdown in the measure, which tracks changes in total pay including bonuses, suggests that the pace of earnings growth may be gradually moderating after a period of relatively elevated wage increases. While still positive, the dip from May’s reading could be viewed by policymakers and markets as a sign that wage-driven inflationary pressures are beginning to soften.
Investors and analysts will be watching subsequent releases closely to assess whether June’s decline marks the beginning of a more sustained trend in wage growth or a temporary pause after previous gains.
