Salaries have fallen for the first time in six months, boosting hopes of a Bank of England rate cut later this summer.

Monthly average salaries slipped 0.1pc to £38,765 from April to May, the first decline since last October, according to Adzuna’s closely-watched jobs report. 

Although the decline is small, slowing wage growth could ease fears about a future uptick in inflation and bolster the chance of a rate cut by the Bank later this year.

The Bank held rates at 5.25pc again last week but economic indicators suggest a cut to borrowing costs is in the offing.

Inflation fell back to the Bank’s 2pc target for the first time in three years last week, paving the way for a rate cut as soon as August. 

Adzuna’s monthly jobs report gives a snapshot of UK job vacancies. The company supplies its real time data to the Cabinet Office and Office for National Statistics labour market indices.

Job vacancies were broadly flat from April to May, rising by just 77 vacancies to 854,248.

The figure was 18.7pc below May last year, signalling fewer job openings and more normal pay growth, which will ease concerns among the Bank’s policymakers that the labour market is running too hot still.

Adzuna co-founder Andrew Hunter said the salary fall was “pointing to a slightly less tight labour market”.

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