In the UK, the Office for National Statistics (ONS) has reported a slowdown in wage growth amidst a rise in the unemployment rate. As of the quarter ending in January, average regular pay growth excluding bonuses fell to 6.1%, marking the slowest pace of growth in over a year. Despite this deceleration, real regular wages, adjusting for inflation, rose by 2%, the highest increase since 2019.

The unemployment rate has unexpectedly risen to 3.9% during the three months to January, up from the previous quarter’s 3.8%. This increase contrasts with the stable rate anticipated by economists and accompanies a continued decrease in job vacancies, which fell by 43,000 to 908,000 in the three months to February.

Despite the slowdown in wage growth and the challenges within the job market, the overall number of employed people in the UK has been increasing, with real-terms pay also on the rise due to lower inflation. The ONS has flagged concerns regarding the volatility of their employment and unemployment estimates, suggesting caution in interpreting these figures. This economic situation aligns with the Bank of England’s view that inflationary pressures in the economy are easing, albeit raising concerns about the labour market’s health and the potential impacts on workers’ earnings.

Amidst these economic developments, the UK’s Competition and Markets Authority (CMA) has announced plans to initiate a formal investigation into veterinary pricing, addressing concerns over potential overpricing of pet medicines, lack of pricing transparency, and weak competition in certain areas due to market consolidation. The investigation seeks to determine the fairness of the veterinary market’s operations, aiming to enhance consumer information and foster competition within the sector.