Wage growth in the UK for permanent staff has fallen to its slowest rate in more than a year, according to a report from KPMG and the Recruitment and Employment Federation.

The jobs report showed the index gauging salaries for permanent staff fell to 61.1 from 61.5 in August, a 13-month low.

The slowdown came as demand for permanent staff steadied, with an index reading of 60.2 versus 60.1 in August.

However, wages for temporary workers have risen in the same period – the index showed an increase from 58.5 to 59.0.

‘Surprisingly, there are no signs here of any impact from the credit crunch, but then it is probably too early to look for any,’ says KPMG’s Alan Nolan, adding: ‘The overall picture of a tight labour market remains.’

The news could strengthen calls for an interest rate cut when the Bank of England’s monetary policy group meet tomorrow.