LONDON, (Reuters) – British employers provided annual settlements for pay of 2.2% during the three-month period ending November. This was slightly higher than the previous three months, but still below inflation’s pace, according to industry data.

XpertHR, a human resources data company said that there was evidence of pressure in pay with median settlements at their highest level since June 2020. This is up from 2.0% during the three-month period ending August.

Pay freezes were less frequent than last year. The top quarter of all pay awards was for an increase of at minimum 3%.

The increase is still below the November 5.1% consumer price inflation increase and the 7.1% retail price inflation rise that trade unions use to base wage negotiations.

Sheila Attwood (XpertHR’s pay and benefits editor), said that the rise in median basic pay could indicate the increase in pay pressure.

According to her, “High inflation rates driving up the cost to live and labour shortages are making it more difficult for employers to raise wages to keep and attract employees.”

Before its decision on December interest rates, the Bank of England was closely monitoring pay pressures. It will announce this at 1200 GMT Thursday.

A separate report by the Chartered Institute of Personnel and Development last month indicated that employers in private sectors expected to increase their staff’s pay by 2.5% in 12 months ending September 2022. It is the highest rise since 2019.