The UK employment report shows that inflation pressures are weakening.

Investec's Philip Shaw said in a report that the latest UK labor market data shows that long-term inflationary pressures are weakening. The report indicates that the labor market conditions are further cooling, with the unemployment rate reaching its highest level since January 2021. Shaw said that in terms of wage growth, a measure favored by the Bank of England - private sector wages excluding bonuses - fell further to 3.9% in the three months to October, lower than 4.2% in July-September, but slightly higher than the average expectation. He said that this employment report alone is not enough reason for the Bank of England to lower interest rates on Thursday, but the long-term inflation signals suggest that a 25 basis point cut is highly likely this week.