British wages excluding bonuses were 7.3% higher in the three months to May than a year earlier, matching the highest growth rate on record, according to official figures that are likely to add to the Bank of England's inflation worries.

However, there were also some signs of a loosening in the labour market as the unemployment rate unexpectedly rose to 4.0% from 3.8%.

The 7.3% increase in basic earnings matched the reading in the three months to April - which was revised up from an initial estimate of 7.2% - and in the second quarter of 2021, the Office for National Statistics said.

Economists polled by Reuters had forecast a 7.1% rise.

The BoE is monitoring pay growth closely as it assesses how much inflationary pressure remains in Britain's economy after its 13 back-to-back interest rate increases.

Sterling rose against the dollar and euro after Tuesday's data. (Reporting by William Schomberg; editing by Sachin Ravikumar)