The Bank of England (BoE) has highlighted stubbornly low wage growth since the 2008 financial crisis as one reason for keeping United Kingdom interest rates low.
Britain's economy has been resilient to political uncertainty since last June's Brexit vote.
Sterling depreciated 0.6 percent against Europe's common currency to 88.37 pence per euro, approaching Friday's 88.60 pence that was its weakest level since November.
At the beginning of the year, the rate was still negative and had been for nearly three years after new discount supermarkets put pressure on big chain stores and sparked a nationwide supermarket price war.
Reflecting the slide in sterling since last year's Brexit vote, consumer price inflation hit 2.9 per cent in May, even higher than the City had been expecting, and well above the previous month's 2.7 per cent.
According to the UK's Office for National Statistics, which compiles the data, wages after inflation in the February-April quarter were down 0.4% year/year including bonuses and down 0.6% excluding bonuses.
The data for retail sales, producer price and consumer price inflation are also set to be released this week.
The ONS figures come just a day after data showed that consumer spending in the United Kingdom fell for the first time in nearly four years last month, signalling shoppers are growing more cautious and adding to fears that the economy there is cooling.
Paul Hollingsworth, UK economist at Capital Economics, told Xinhua that he thought CPI inflation is now not far away from its peak.
"So they are all factors that factor into the equation, but once there is a bit more clarity on the government and Brexit negotiations, then we expect the pound to strengthen a little bit, but until then, there could still be a bit of volatility".
"The Fed is meeting [today} and if the federal reserve decides to rise interest rates, which is widely expected, that could strengthen the dollar and weaken the pound further".
Policymakers are expected to unanimously decide to hold the interest rate at a record low 0.25% and the quantitative easing at GBP 435 billion.