Over the past 12 months until September wages once again rose more notably than the previous month. The expectations for wage growth in the next 12 months were also slightly above the August level.

Although it is of course positive that inflation has eased over the past months, wage developments nonetheless suggest that inflation might turn out to be more stubborn than the BoE is currently hoping.

Thursday’s survey results give rise to doubts, and concerns that the BoE is not taking sufficient action against higher inflation levels might put further pressure on Sterling. At least until there is convincing evidence of a sustainable decline in inflation rates.