LONDON, Sept 12 Reuters The pound slipped on Tuesday after data showed the British labour market weakened in July even as wage growth stayed strong, and as the dollar advanced.

Sterling rose after the data was released but pared its gains and was last down 0.27 at 1.2475, after climbing 0.35 on Monday.

Britain39;s unemployment rate ticked up to 4.3 in the three months to July, from 4.2 in June, figures from the Office for National Statistics showed on Tuesday.

That was despite wages excluding bonuses standing 7.8 higher than a year earlier in the three months to July, in line with economists39; expectations and matching the record pace set in June.

Part of the fall in the pound was down to a rise in the dollar, which was up 0.27 against the euro . Against the pound, the euro was flat at 85.92 pence.

The data comes ahead of the Bank of England39;s interest rate decision on Thursday next week. Many analysts said the rise in unemployment means the Bank cannot raise rates much further, after pushing them to 5.25 from just 0.1 in December 2021.

Today39;s release adds to signals of a weaker start to economic activity in Q3, said Emma Wilks, UK economist at Lloyds Bank, pointing to the rise in unemployment.

The upward pressure on wage growth came from the public sector while private sector pay softened, and with expected pay growth over the next year also softening, we may have now seen the peak in private sector pay pressures.

Sterling has been one of the best…