LONDON: British wages excluding bonuses were a record 7.8% higher than a year earlier in the three months to June, official figures from showed on Tuesday, adding to worries for the Bank of England about long-term inflation.

The data also showed some fresh signs of cooling in the labour market with the unemployment rate unexpectedly rising to 4.2% from 4.0%, the highest since the three months to October 2021, the Office for National Statistics said.

But the increase in basic earnings - the strongest in records data back to 2001 - represented further impetus for Britain’s high rate of inflation with many employers resorting to increased pay offers to retain or attract staff.

Annual pay growth including bonuses accelerated to 8.2%, the fastest in the ONS data excluding the coronavirus pandemic period when government job subsidies distorted the data. Sterling rose against the dollar and euro after Tuesday’s data.