Inflation Eats at Surging U.S. Pay With Biden Plans at Stake
“Americans are enjoying outsized pay boosts this year from desperate employers, but the raises are failing to keep pace with surging prices for everyday goods. U.S. wages likely posted a third strong monthly gain to fuel a 3.6% increase in June from a year earlier, according to economists’ forecasts ahead of the Labor Department’s jobs report due Friday. Companies including FedEx Corp. and Olive Garden owner Darden Restaurants Inc. are raising wages to attract staff.”
Euro-Area Inflation Slows to Below 2% in Dip Seen as Temporary
“Euro-zone inflation cooled in June to temporarily ease concerns that the bloc’s economic reopening will fuel price growth, though economists expect the pressures to gather pace again in the second half of the year. Consumer prices rose 1.9% from a year earlier, down from a more than two-year high of 2% in May. Core inflation, a less volatile measure that excludes volatile items such as food and energy, slowed to 0.9%.”
China’s Manufacturing Holds Firm With Price Pressures Easing
“China’s manufacturing output continued to expand in June, a key survey showed, with signs that price pressures are easing as the government clamps down on surging raw material costs. The official manufacturing purchasing managers’ index was little changed at 50.9 in June from 51 in May, the National Bureau of Statistics said Wednesday. That was largely in line with the 50.8 projected by economists and above the 50-mark that signals expansion.”
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