UK Earnings Growth Unexpectedly Slows In 3mths

British headline average earnings growth unexpectedly slowed in April to its weakest since December.

British headline average earnings growth unexpectedly slowed in April to its weakest since December as high New Year bonuses fell out of the three month calculation, official figures showed on Wednesday.

The Office for National Statistics said average earnings growth in the three months to April eased to 4.0 percent from a downwardly revised 4.4 percent in March, well below analysts' forecasts for a reading of 4.5 percent.

In April alone, earnings were just 3.3 percent higher than a year ago -- the weakest increase since January 2006.

The figures will ease policymakers' immediate concerns about wage deals fuelling inflation and are likely to dent expectations of more than one further interest rise this year.

The slowdown was mainly due to high bonuses paid in the New Year to City of London bankers falling out of the calculation.

Excluding bonuses, earnings growth in the three months to April held steady at 3.6 percent.

The number of people claiming jobless benefits fell for the eighth straight month and more than expected by 9,300 in May. That took the jobless rate down to 2.7 percent, its lowest since September 2005.