Wages increased at a slower pace than expected, official figures show, easing pressure on the Bank of England to raise interest rates again before the year is over.

Pay including bonuses increased by 8.1pc in the three months to August, compared to a record pace of 8.5pc in July, according to the Office for National Statistics. Economists had expected an increase of 8.3pc.

It comes a day after the chief economist at the Bank of England warned that it is too early to declare victory in the fight against inflation.

Huw Pill said inflation at 6.7pc is still “well above” the 2pc target, leaving the Bank with “work to do” to get price rises under control for the years to come.

He added: “We cannot be complacent. We have work to do. It is important that we do not declare victory prematurely.”

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