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mpc: 25 Although there was little evidence of rising nominal wage pressures, the annual growth rate of the average real product wage ­ that is the real cost faced by the employer ­ had risen a little since the start of 2005, while the growth of the average real consumption wage earned by employees had fallen a little. The rise in real product wage growth could have been evidence of some resistance to the required fall in real consumption wage growth in the face of higher energy prices, although this could also reflect measurement issues: the higher costs facing employers would, in part, reflect any one-off payments to offset pension fund deficits, but they would not affect the marginal cost of employing labour.

The immediate policy decision