AN upward trend in inflation is starting to affect pay deals, with average settlements edging up to 3.1 per cent, a report has showed.
An analysis of 57 recent agreements affecting nearly a million workers showed an increase for the first time in a year.
Incomes Data Services (IDS) said increases in the national minimum wage had also boosted pay in lower-paying jobs, triggering some relatively high percentage rises.
One in four recent deals have resulted in pay rises of at least 3.8 per cent, while the average rose from three per cent to 3.1 per cent.
Alastair Hatchett, head of pay services at IDS, said: "In the late summer, we pointed out that the rising inflation rate would soon start to push up pay settlements.
"We are now seeing the first measurable sign that the trend has begun. The question the Bank of England will be asking themselves is where and when does this trend peak."
Recent deals have ranged from one per cent for catering workers to 14 per cent for felt-roofing contractors.
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