This low level of wage growth is contributing to quite low rates of inflation in a range of service industries. Increased job uncertainty is likely to be one of the factors here, with consumer surveys showing high levels of concern about future unemployment.
With the labour market still tight and businesses still finding it easy to raise their prices, Governing Council agreed that the economy still needs a more sustained moderation of demand. Finally, on inflation and inflation expectations, Governing Council agreed that we continue to see a mixed picture.