LONDON (Reuters – British employers anticipate that they will raise their staff’s pay by 3%. That is a substantial increase for normal standards, however, it remains well below inflation. A Monday survey showed signs of slower wage momentum.

According to the Chartered Institute of Personnel and Development, almost three quarters of those who responded in their survey expected problems filling vacancies in the coming six months.

According to the CIPD, while 44% responded to the shortage by raising pay over the six-months, 27% said they would do it in the future.

Jonathan Boys, a CIPD economist stated that “our research… suggests employers are running short of steam on how they can increase pay any more, so they’re switching to retention and keeping your existing workforce happy,” Jonathan Boys.

The Bank of England closely monitors pay agreements to assess the likelihood of inflation rising to 10% this year and 7% at the moment.

This quarter’s 3% increase in salaries was the largest since 2013, when the CIPD launched its series of surveys. It also matches the amount in the prior quarter.

Between March 22-April 18, the CIPD surveyed 223 employers.