Post by account_disabled on Feb 22, 2024 5:57:28 GMT -5
The European Central Bank could be forgiven for breathing a sigh of relief today when new data showed wage growth in the eurozone is stabilizing. But the issue remains a major concern for central banks around the world. Hourly labor costs were 4.5 percent higher in the April-June period compared to last year, although they rose at a slower pace than in previous quarters. Ahead of the data, several ECB officials had told the Financial Times that rates could rise again in December if inflation and wage growth remained high, even after raising them to a record high of 4 percent yesterday. ECB President Christine Lagarde said after the decision that labor costs were a growing part of the inflation equation. The problem is particularly serious in Germany, the bloc's largest economy, but it is also a problem in the United Kingdom and the United States.
The UK this week recorded wage growth at record levels, while new data this morning showed it was the main cause of inflation in the country's dominant services sector. Separate survey data ahead Pakistan Phone Number of the Bank of England's rate decision next week showed public satisfaction with its inflation strategy was at a record low, reinforcing expectations of another quarter-point increase, bringing the borrowing cost at 5.5 percent, the highest since 2008. August inflation The data, released on Wednesday, the day before the Bank of England decision, could change the narrative. In the US, new data this week showed higher-than-expected inflation in producer and consumer prices ahead of next week's Federal Reserve rate decision, although in this case it was mainly driven due to a jump in oil prices.
Here's our explanation of why oil is back to $90 a barrel.) Still, consumers are becoming more positive: New survey data today showed inflation expectations for next year will fall to an 18-month low. One of the big questions facing global policymakers is whether higher interest rates will leave economic scars. In today's column from him, Soumaya Keynes analyzes two studies that he argues could harm innovation and growth, even if they succeed in reducing overall inflation. “Monetary policy is a blunt tool, and the more things it is asked to do, the worse it will perform at each one of them,” he writes. “For now, if rising interest rates derail investment and innovation, the mess will be left to others to clean up.” What you need to know: the UK and European economy The northern section of the long-awaited UK High Speed.
The UK this week recorded wage growth at record levels, while new data this morning showed it was the main cause of inflation in the country's dominant services sector. Separate survey data ahead Pakistan Phone Number of the Bank of England's rate decision next week showed public satisfaction with its inflation strategy was at a record low, reinforcing expectations of another quarter-point increase, bringing the borrowing cost at 5.5 percent, the highest since 2008. August inflation The data, released on Wednesday, the day before the Bank of England decision, could change the narrative. In the US, new data this week showed higher-than-expected inflation in producer and consumer prices ahead of next week's Federal Reserve rate decision, although in this case it was mainly driven due to a jump in oil prices.
Here's our explanation of why oil is back to $90 a barrel.) Still, consumers are becoming more positive: New survey data today showed inflation expectations for next year will fall to an 18-month low. One of the big questions facing global policymakers is whether higher interest rates will leave economic scars. In today's column from him, Soumaya Keynes analyzes two studies that he argues could harm innovation and growth, even if they succeed in reducing overall inflation. “Monetary policy is a blunt tool, and the more things it is asked to do, the worse it will perform at each one of them,” he writes. “For now, if rising interest rates derail investment and innovation, the mess will be left to others to clean up.” What you need to know: the UK and European economy The northern section of the long-awaited UK High Speed.