High labour demand, particularly in services such as finance, is increasing pressures on wage inflation, according to a series of pay and recruitment studies.

Demand for all kinds of staff is at a 27-month high, says a study by the Recruitment and Employment Confederation and KPMG, the consultants. Ahead of Thursday's Bank of England interest rate decision, the continued strength of the labour market was "maintaining substantial inflationary pressure on workers' pay".