The survey finds that, in August 2008, permanent placements showed their sharpest fall since November 2001, coupled with a record decline in temp placements, At the same time, rises in permanent and temp staff pay were "very modest" in August.

This may not be welcome news to all readers, but it will be music to the ears of the Bank of England's Monetary Policy Committee (MPC), who remain preoccupied with the risk of recent high inflation (subscription required) feeding through into pay awards.

As the latest monthly analysis of whole economy pay awards (subscription required) from IRS notes: "The MPC will monitor indicators including earnings data to assess whether or not above-target inflation is leading to increased inflation expectations and thus upward pressure on wages. As the next pay round gets under way in the autumn, when inflation is still expected to be near its peak, it may be these inflation expectations that dictate whether or not the Bank of England can keep control of wages and prices."

The MPC's next interest rate decision is due tomorrow (4 September), while the next monthly IRS pay trends analysis will be published to XpertHR's pay and benefits homepage (subscription required) on Friday 26 September 2008.

• If you are actively involved in your organisation's pay-setting process, we would like to invite you to take part in the 20th annual IRS Pay and Benefits Bulletin Pay Prospects survey of UK private sector reward practices. Each year, this major study looks in detail at how private sector employers set their annual pay review and reward priorities for the coming year. Taking part in our research allows you to compare your expected pay award and reward practices with those of other organisations.