STORY: British pay growth dropped to its lowest in nearly two years in the second quarter.
Tuesday's (August 13) official figures likely reassured the country's central bank that inflation pressures are easing.
Average weekly earnings, excluding bonuses, were 5.4% higher than a year earlier in the three months to the end of June.
It was down from 5.8% in the three months to May and the lowest in two years.
However, the unemployment rate fell unexpectedly.
It dropped to 4.2% from 4.4% - its lowest since February and beating expectations.
After the update, investors slightly scaled back their bets on a rate cut in September by the Bank of England.
The central bank said it would keep a close eye on wage growth when it cut interest rates in early August.
Regular pay is still growing at nearly double the pace the Bank of England thinks is compatible with keeping inflation at its 2% target over the medium term.
The central bank expects data on Wednesday (August 14) to show inflation back above target.
