LONDON, June 27 Reuters Average starting pay for British jobs rose in May at the fastest pace in four months despite a 20 annual fall in the number of jobs on offer, figures from hiring platform Indeed showed, adding to the mixed picture on the inflation outlook.

The 6.5 rise in advertised starting pay compared with a year earlier outstrips the 6.0 rise in official wage data for the three months to April. That was the joint smallest increase since September 2022, although still twice the rate the Bank of England views as consistent with low inflation.

Uncertainty about whether pay growth is slowing materially remains a key factor behind the BoE39;s reluctance to cut interest rates from the current 16year high, despite the return of headline inflation to its 2 target last month.

But past doubledigit inflation means rising wages have not yet translated into an economic feelgood factor, adding to Prime Minister Rishi Sunak39;s bleak prospects in next week39;s election.

Some economists worry that the large number of people who have dropped out of Britain39;s job market since the COVID19 pandemic is storing up inflation problems for the long term.

However, the Indeed data showed the number of unfilled jobs often seen as an indicator of future wage and inflation pressures is 0.9 below its level just before the COVID19 outbreak, after falling by a fifth in the past year.

The UK labour market has continued its adjustment in recent months, though it remains somewhat tight…