Pay rises are staying well ahead of inflation with few firms imposing wage freezes.

Most recent deals have been between two per cent and 3.5 per cent, compared to the rate of inflation at 1.1 per cent.

Pay analysts Incomes Data Services said average deals between April and June were worth three per cent, although one in three were higher.

The figures had been boosted by public sector wage deals, which were mainly between 3.5 per cent and four per cent, in April.

Settlements in private firms were lower, averaging 2.5 per cent, although they ranged from nil increase to 11 per cent.

So far this year, one in ten wage reviews led to a freeze, but most of these were in January.