London (AFP) - Britain's unemployment rate has descended to a new six-year low of 5.7 percent while growth in wages outpaced inflation, official data showed Wednesday, offering the government a lift before May elections.

The jobless rate for October-December was down from 5.8 percent for the three months to the end of November, its lowest level August 2008, the Office for National Statistics (ONS) said in a statement.

The rate is currently the third lowest in the European Union, after Germany's 4.8 percent and Austria's 4.9 percent. Markets had anticipated no change in jobless figures.

Wages excluding bonuses advanced 1.7 percent in the three months to December compared to the previous year.

The data provided a lift to Prime Minister David Cameron's Conservative-Liberal Democrat coalition government, which faces a general election in May.

It comes one day after news that the 12 month inflation rate slowed to a record low 0.3 percent in January on the back of plunging oil and food prices.

"Earnings growth is now markedly above inflation, which is very good news for households and for consumer spending prospects in 2015," said Howard Archer, economist at research group IHS Global Insight.

"It is also potentially good news for the government as the Conservatives and Liberal Democrats will both be hoping that rising real earnings growth will make people feel happier about life and more inclined to vote for them as Mayâs general election draws ever closer."

The ONS added Wednesday that the number of unemployed slid 97,000 to 1.86 million people during the quarter, compared with the three months to September.

The jobless total was down by almost half a million compared with the same period a year earlier, while employment increased to a record 30.9 million people.

Bank of England (BoE) governor Mark Carney, however,warned last week that low inflation could veer into deflation in coming months and force rate cuts, signalling new risks to the economy.

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Separately on Wednesday, minutes showed that the BoE's nine-member monetary policy committee had voted unanimously to leave interest rates on hold earlier this month.

Borrowing costs have stood at a record-low 0.50 percent since March 2009.



