UK wages continue to outpace inflation, figures show

Average wages are continuing to outpace inflation with pay packets rising for both the public and private sector workers, official figures show.

Pay, after taking into account the pace of price rises, rose 3.4% between October and December compared with the same period a year ago, according to the Office for National Statistics (ONS).

The UK's unemployment rate remained unchanged at 4.4%, although the ONS has advised that its jobs figures should be treated with caution because of low response rates to its employment survey.

The figures follow warnings from businesses that they are planning to cut workforces and raise prices ahead of higher employment costs in April.