The Know Daily - Tuesday 12 September 2023

_{Tuesday 12 September ∙ Read in 5m 24s ∙ Listening to Olivia Rodrigo}

In a tribute to trailblazing female astronomers, two asteroids have been named in honour of Annie Maunder and Alice Everett. Working in the 19th century, Maunder and Everett were among the first women in the world to earn a living in astronomy, but their achievements went unrecognised at the time. Now, they are certified 💫 stars 💫.

📈 UK economy update

Wage growth has caught up with rising prices for the first time in over a year, according to Office for National Statistics (ONS) data published this morning.

What’s the story?
Regular pay (excluding bonuses) rose by 7.8% in May to July, compared with the same period last year. As inflation rose at the same pace over the quarter, “people’s real pay is no longer falling”, said the ONS.

However, Sky News pointed out that it may not feel that way for the “millions of families” who have been affected by the cost-of-living crisis to date.

Why are these stats significant?
The data is “crucial” in setting the rise in the state pension from next April, said the BBC.

Under the triple-lock system, the state pension increases in line with whichever of these measures is highest: inflation, the average increase in wages, or 2.5%. The wage measure taken into account here is total pay including bonuses, which was recorded at 8.5%.

So while the inflation figure is yet to be published, it seems “unlikely to be higher” than this, said the BBC. That means that the state pension will likely rise by 8.5% in April, equalling an annual increase of £691.60 on the basic state pension, or £902.20 a year for those receiving the new flat-rate state pension.

What’s the bigger picture?
The ONS data is “closely-watched” by the Bank of England, said Sky News, which is deciding on whether a further interest rate hike is needed. The theory is that high wage growth fuels inflation, because people have more money to spend.

Financial markets therefore expect the Bank to raise interest rates for the 15th time in a row - to 5.5% - when it meets next Thursday.