Data released yesterday showed that average earnings excluding bonuses were 6.7% higher in the three months to December than the previous year, accelerating from 6.5% and more than expected. It’s the biggest increase since records began in 2001 (excluding the pandemic) but still behind the rising cost of living. Total pay adjusted for inflation is suffering its largest decline since early 2009. Unemployment stayed steady at 3.7% during the period, a level not seen since the 1970s. Economists believe the strength of the labour market means the Bank of England must raise interest rates further to bring prices under control.