ONS reported that in the three months to January, average weekly earnings for UK employees grew at the fastest rate since September 2015.
This was by 2.6% excluding bonuses, and 2.8% including bonuses, compared with a year earlier.
Sterling was up 0.46% against the dollar as a result.
While the wage growth data by ONS was in nominal terms, it is still in line with CPI data released yesterday which showed a drop in inflation to 2.7% in February.
Tilney’s managing director Jason Hollands said this is proving that the UK economy is a lot more “resilient than the gloomy forecasters predicted”.
He added: “When combined with a sharp retreat in inflation and progress towards a transitional Brexit deal likely boosting confidence, this should increase the potential for a May rate hike.”
Meanwhile, in the same three-month period, the number of people out of work increased by 24,000 to 1.45 million. However, the headline unemployment rate still fell overall from 4.4% to 4.3%, the lowest since 1975.
The rate of employment rose to 75.3%, up from 74.6% a year earlier.
ONS senior statistician Matt Hughes said: “Employment and unemployment levels were both up on the quarter, with the employment rate returning to its joint highest ever.
“Economically inactive people, those who are neither working nor looking for a job, fell by their largest amount in almost five-and-a- half years.
“Total earnings growth continues to nudge upwards in cash terms. However, earnings are still failing to outpace inflation.”
