LONDON, May 10 Reuters British firms reduced hiring of permanent staff via recruitment agencies at the fastest pace in more than two years, a survey showed on Wednesday, a day before the Bank of England announces its latest move to tackle inflation pressure.

The Recruitment and Employment ConfederationKPMG said temporary hiring which often increases when employers are uncertain about the economic outlook rose at the fastest pace in seven months.

Firms are hedging their bets, REC Chief Executive Neil Carberry said. After a better month in March, in April we saw permanent hiring fall back quickly and businesses turn to temps to help them through. London had a particularly difficult month.

The REC survey showed staff availability increased for the second month in a row in April as some companies laid off workers and people sought betterpaid work to help cope with an inflation rate that remained above 10 in March.

Salaries for people starting permanent roles increased at the fastest pace in four months, something likely to be noted by the BoE as it worries about the jump in inflation turning into a longlasting problem for Britain39;s economy.

Most investors and economists expect the BoE to increase Bank Rate for the 12th meeting in a row on Thursday.

Reporting by William Schomberg, editing by Andy Bruce

Source Reuters