Average earnings fell to 8.1% in the three months to August but were above prices for the first time in two years. This suggests that the squeeze on the cost of living is beginning to ease.The rate of increase was slightly lower than economist’s expectations suggesting that interest rates may have peaked.Huw Pill, the Bank of England’s Chief Economist and a member of the Monetary Policy Committee spoke yesterday of his fear that wage increases are still too high, and this means that it will be difficult to bring inflation under control. However, the fall in the pace of wage increases despite being smaller than Pill would have expected is welcome and is likely to accelerate going forward as the public sector pay round is concluded for this year and there is a sense in the private sector that inflation is beginning to fall.Pill’s MPC colleague, Swati Dhingra spoke yesterday, and expects price pressures and wages to moderate further. She is considered more dovish than her more aggressive colleagues having voted for an end to rate increases at every meeting she has attended. She joined the MPC in September last year!Beyond Currency Market Commentary:Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.