UK Wage Growth Fastest Since February 2009

Average weekly earnings excluding bonuses rise 2.7% year on year. This is the strongest wage growth since February 2009.

Average weekly earnings for the period February to April 2015 were 2.7% higher than the same period last year. This is highest annual growth rate since the three months to February 2009.

For April 2015 average regular pay (excluding bonuses) for employees in Great Britain was £462 per week before tax and other deductions from pay

The Office for National Statistics (ONS) said: " higher three month average growth rates were recorded, for both regular pay and total pay, across a wide range of industries in the private sector compared with January to March 2015."

The gap (NYSE: GPS - news) between wage growth and inflation, which is tracking at just 0.1%, is now at its widest in eight years.

Since comparable records began in 2000, average total pay for employees in Great Britain has increased from £311 a week in January 2000 to £493 a week in April 2015; an increase of 58.3%. Between January 2000 and April 2015, the Consumer Prices Index increased by 39.0%.

In the same Labour Market release the ONS said there were 424,000 more people in work compared to last year. This has helped lower the unemployment rate to 5.5%, down from 6.6% last year.

These positive figures will re-ignite debate surrounding the timing of a possible rate rise. At the moment economist consensus is for a rate rise to occur in early 2016, but further positive data could bring such a move forward to November.

This morning minutes from the Bank of England show that the monetary policy committee (MPC (KOSDAQ: 050540.KQ - news) ) - the panel that sets interest rates - voted unanimously to maintain rates at the record low of 0.5% in June.

The minutes said: "the committee agreed that the path for UK monetary policy would depend on the prospects for inflation in the UK and would not be determined by the actions of other central banks".

The Federal Reserve, in the US, is widely expected to raise rates in September.

Markit economist, Chris Williamson, reflecting on this morning's figures said: ""The key take-away is that, if the pace of economic growth revives, as widely expected, the recent upturn in pay takes away the main remaining argument to hold off with raising interest rates, and pressure to tighten policy looks set to build significantly as we move into the second half of the year."

The pound jumped against the US dollar as the threat of an earlier rate rise, associated with the positive wage growth data, increased.

By mid-morning the pound was 0.5% stronger against the US dollar.