Wages grew at their slowest pace in two years, official figures show, in a boost to hopes for interest rate cuts.

Average regular earnings dropped from 6pc to 5.7pc in the three months to May, according to the Office for National Statistics (ONS).

The figure was the lowest since the three months to August 2022, and was in line with economists estimates.

Total pay, which includes bonuses, also fell from 5.9pc to 5.7pc.

When the cost of living is taken into account, real pay grew by 3.2pc according to the Office for National Statistics, which was its fastest pace since the three months to August 2021, shortly before Britain’s inflation crisis took hold.

The Bank of England has pointed to wage growth as a risk to inflation, which would delay the timing of when it could begin cutting interest rates from their 16-year highs of 5.25pc.

The rate of UK unemployment remained unchanged at 4.4pc.

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