![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/12\/VP-GRAPH-REAL-WAGES-12-dec-comp.jpg\")
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The rate of UK unemployment also remained unchanged at 4.2% in the three months to October, the ONS said.<\/p>\n
This was down from the previous quarter when wage growth stood at 7.7% in the three months to September this year.<\/p>\n
But taking into account\u00a0inflation, which measures how much prices are rising, wages increased by 1.3%.<\/p>\n
A growth in wages is good news for millions of workers who have been battling against high\u00a0inflation\u00a0in recent months.<\/p>\n
Read more in money<\/h2>\n
The annual rate at which prices rise was 4.6% in the year to October,\u00a0down from 6.7% in September.<\/p>\n It means Prime Minister\u00a0Rishi Sunak\u00a0has hit his\u00a0target\u00a0to halve inflation, a promise he made at the beginning of the year amid the\u00a0cost of living\u00a0crisis when the rate had hit 10.7%.<\/p>\n Commenting on today's figures, ONS director of economic statistics Darren Morgan said: "While annual growth in earnings remains high in cash terms, there are some signs that wage pressure might be easing overall.<\/p>\n "However, as inflation has been falling more quickly, pay continues to grow in real terms."<\/p>\n <\/span><\/p>\n <\/span><\/p>\n <\/span><\/p>\n <\/span><\/p>\n If\u00a0pay rises\u00a0by less than inflation it squeezes income, leaving people worse off.<\/p>\n Inflation is a measure of how much goods and services are worth in a given period.<\/p>\n But wages\u00a0are now rising faster than prices for the second time since September 2021, easing pressure on\u00a0hard-up households.<\/p>\n Meanwhile, today's figures also show growth in\u00a0average total pay, which includes bonuses, was 7.2% in August to October.<\/p>\n Rising wages have previously been blamed for keeping inflation high by\u00a0Bank of England\u00a0bosses.<\/p>\n The Chancellor of Exchequer, Jeremy Hunt said: "It's positive to see inflation continue to fall and real wages growing.<\/p>\n "At the Autumn Statement, I announced an ambitious set of measures to get more people into work and boost economic growth.<\/p>\n "This includes a significant expansion of health support and an over \u00a39 billion per year tax cut for employees and the self-employed, worth over \u00a3450 for the average worker."<\/p>\n Growth in wages is good news for millions of workers who have been battling against high\u00a0inflation\u00a0in recent months.<\/p>\n Alice Haine,\u00a0personal\u00a0finance analyst at Bestinvest, said: "A rising real wage technically delivers a boost to workers\u2019 standard of living as it means the money they earn can stretch further, though it is important to note that the rise is an average and does not mean the cost of living challenges are easing for everyone."<\/p>\n While high wage growth can ease the pressure off households it does run the risk of fuelling inflation if businesses pass on that cost to customers by increasing the price of goods and services.<\/p>\n This would add extra pressure to household budgets at a time when energy prices are under threat from geopolitical tensions and rising demand as the colder weather sets in.<\/p>\n Alice added: "Headline inflation is expected to drop below 5% for the first time in two years when the October figures are released on Wednesday \u2013 delivering a boost to Prime Minister Rishi Sunak who made a pledge in January to halve inflation by the end of the year."<\/p>\n Rising wages have previously been blamed for keeping inflation high by\u00a0Bank of England\u00a0bosses.<\/p>\n The\u00a0Bank\u2019s\u00a0Monetary Policy Committee (MPC) held the\u00a0base rate\u00a0at 0.25 percentage points to 5.25% earlier this month.<\/p>\n This was the second time in a row that the bank decided to hold the base rate, easing pressure on homeowners facing rising mortgage rates.<\/p>\n Interest rates could be\u00a0cut by the Bank of England as soon as May, experts are now predicting.<\/p>\n Analysts at Wall Street financial services giant Morgan Stanley said falling\u00a0energy\u00a0costs will bring down\u00a0inflation\u00a0\u2014 paving the way for reducing the current high of 5.25%.<\/p>\n The US bank predict rates could be a full point down to 4.25% by the end of\u00a0next\u00a0year.<\/p>\n High-street banks use the BoE base rate to work out the interest rates it offers to customers.<\/p>\n![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/12\/crop-25013779.jpg\")
<\/picture>RIPPED OFF <\/span><\/p>\nWarning over 'drip pricing' at checkout that could trick you in to spending more<\/h3>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/12\/newspress-collage-12du8zcw1-1702339965803.jpg\")
<\/picture>POST DEADLINE <\/span><\/p>\nFinal date to send your Christmas post by \u2013 or risk presents not arriving<\/h3>\n
Most read in Money<\/h2>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/12\/hmrc-letter-762591457-1.jpg\")
<\/picture>CHECK IT <\/span><\/p>\nFull list of codes on payslips that reveal if you’re owed cash \u2013 get \u00a32,585 back<\/h3>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/12\/NEW-OFF-PLATFORM-TEMPLATE-43.png\")
<\/picture>CASH HELP <\/span><\/p>\nBenefits to arrive early ahead of Christmas as payment dates revealed<\/h3>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/11\/d1j92n-quality-street-chocolates-859751431.jpg\")
<\/picture>XMAS TIME <\/span><\/p>\nShoppers rush to buy 59p Quality Street chocolate from little-known supermarket<\/h3>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/12\/JB-COMP-AIR-FRYER-XMAS-2.jpg\")
<\/picture>FESTIVE FRY <\/span><\/p>\nI made Xmas dinner in an air fryer – a crucial part was bitterly disappointing<\/h3>\n
What it means for your money<\/h2>\n
Read more on The Sun<\/h2>\n
![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/12\/newspress-collage-7l8o9upy1-1702287420601.jpg\")
<\/picture>![](\"https:\/\/www.thesun.co.uk\/wp-content\/uploads\/2023\/12\/newspress-collage-pwth8g5te-1702293668851.jpg\")
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