U.K. Pay Boosts

British employers increased pay for new staff by the most since at least the 1990s, according to a survey that will be studied by the Bank of England as it tries to assess how persistent the recent jump in inflation might be. The Recruitment and Employment Confederation said firms were still seeking to hire in September but staff availability fell sharply again, pushing up starting salaries for permanent and temporary workers by the most in the survey's 24-year history. Competition for staff is widespread and includes food processing, logistics, truck transport and office-based jobs. Labor shortages have affected everyday lives from empty petrol stations to fewer goods on supermarket shelves. The Bank of England has said there is a growing case for its first interest rate increase since the coronavirus pandemic struck last year, with inflation expected to top 4%. It is watching measures of pay growth carefully as it gauges whether the rise in inflation will prove to be transitory as it has predicted.