UK wages are rising at a record pace. That makes higher interest rates more likely

By PAN PYLAS
Associated Press

LONDON (AP) — Wages in the U.K. are rising at a record high rate amid stubbornly high inflation. That’s bolstered expectations that interest rates will increase again — to the worry of many homeowners who are seeing their mortgage payments spike. The Office for National Statistics said Tuesday that wages, excluding bonuses, rose by 7.3% in the three months to May. That matches the highest rate since records began in 2001. For months, workers have been seeking pay that keeps pace with high inflation, which is running at 8.7% despite declines in energy prices and a series of interest rate increases from the Bank of England.