The Office for National Statistics is expected to reveal that companies’ employment costs have been rising faster than previously believed, putting greater pressure on the Bank of England to raise rates Times Newspapers LtdPressure on the Bank of England to raise interest rates may be building more rapidly than first thought after a mistake by the Office for National Statistics led to domestic inflation being understated. On Friday, the ONS published an error in one of the critical data points used by the Bank of England to gauge domestic price pressures. In a correction to be released today, the nation’s official statisticians are expected to reveal that companies’ employment costs have been rising faster than previously believed. Unit labour costs, which show the overall cost of employment per person, are watched closely by the Bank for evidence of inflation creeping into the domestic economy. Inflation caused by currency depreciation, as experienced since the Brexit vote, is considered more…

Source: The Times October 08, 2017 23:03 UTC