Latest labour cost details from the Office for National Statistics

  • Q2 Unit labour costs 0.5% vs 0.3% in Q1.
  • Year on year +2.2%. Fastest since Q4 2012
  • Output per hour 1.3% vs 0.5% prior y/y. 0.9% q/q. Highest on record

This is what the BOE wants to see from the UK economy. If wages and productivity keep rising that's going to keep rate hikes firmly on the front foot