UK state pension set to top £13,000 a year as wage growth slows to 3.9%

The UK state pension is expected to surpass £13,000 a year, a significant increase due to the rising cost of living. This comes as wage growth in the UK has slowed to 3.9%, down from 4.1% in the previous quarter, indicating that workers are facing a renewed cost of living squeeze. The inflationary pressure, partly driven by the Iran war, poses a challenge for the Bank of England as it prepares to make an interest rate decision.

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The Iran war is fuelling inflation in the UK, which could lead to higher interest rates. This could reduce consumer spending and hurt the economy.

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