LONDON, Feb 26 (Reuters) - Discount grocer Aldi’s British arm has raised the pay for more than 28,000 hourly paid store staff for the second time in two months, overtaking rival Lidl GB’s latest increase and indicating ongoing competition for workers in the sector.

The move comes despite official data this month showing Britain’s jobless rate rose to its highest in over a decade outside the pandemic period, suggesting retailers are still under pressure to attract and retain staff even as the wider labour market softens.

The Bank of England is monitoring wage settlements closely as it assesses whether inflation pressures will allow it to lower interest rates further.

ABOVE INFLATION PAY RISES ON AN ANNUAL BASIS

Aldi UK said that from April 1 store assistants will earn at least 13.50 pounds ($18.27) an hour outside of London, with workers in London receiving higher rates.

Aldi UK had announced last month it would from March 1 pay 13.35 pounds an hour outside of London. However, Lidl GB said this month it would pay 10 pence an hour more outside of the capital.

Both Aldi UK and Lidl GB, along with retailers including John Lewis, Sainsbury's SBRY.L and Costa Coffee, have given pay rises on an annual basis above the rate of inflation, which was 3% in January.

Britain's government-mandated main minimum wage will rise by 4.1% to 12.71 pounds an hour in April, despite complaints from some employers that this will push up prices.

($1 = 0.7391 pounds)

(Reporting by James Davey;Editing by Elaine Hardcastle)

((james.davey@thomsonreuters.com))