The pound inched higher on Tuesday after data showed British wages grew at a record pace again in July, potentially adding to pressure on the Bank of England to keep raising interest rates.

Sterling rose after the data was released, but then pared its gains and was last up 0.06% at $1.2516, having traded at $1.2508 before the figures were published.

British wages excluding bonuses were 7.8% higher than a year earlier in the three months to July, matching the record pace set in June, figures from the Office for National Statistics showed on Tuesday. (Reporting by Harry Robertson; Editing by Amanda Cooper)