UK annual earnings growth likely to rise from 1.6% in Dec to 2.0% in Jan

The latest UK labour market figures (09.30 GMT) should confirm that the jobs market has continued to tighten. 

However, all eyes will be on the earnings figures again for any signs that deflation is becoming entrenched. Unlikely these signs will emerge. 

Capital Economics notes in a report on Tuesday:

• We expect a fall in UK headline ILO unemployment rate from 5.7% to 5.6% in January. 
  
  
• Given how low unemployment is now and the strengthening of surveys of private-sector pay awards, we forecast a rise in the annual earnings growth (excluding bonuses) from 1.6% in Dec to 2.0% in Jan.