Surprise Jump in U.S. Wages Gives Inflation Debate a New Twist
“An unexpected jump in U.S. wages has given financial markets a new reason to worry that higher inflation may be here to stay. Consumer prices are rising quickly as the economy reopens after the pandemic. A closely watched data release on Thursday is expected to show prices rose another 0.4% in May — pushing annual inflation above April’s 4.2%, already the highest in more than a decade.”
Haldane Says Gangbusters U.K. Economy May Need Less BOE Support
“The U.K. economy is “going gangbusters” at the moment and the Bank of England may need to consider turning off the monetary stimulus tap to keep inflation in check, according to Chief Economist Andy Haldane. The pound rose. Haldane, who is leaving the role this month, said it was “hard to find anything whose price isn’t going up at the moment” and it was important to stop any temporary blip in inflation from becoming embedded.”
China’s Factory Inflation at 2008 High Adds to Global Pressures
“Surging costs of imported commodities drove China’s factory-gate inflation to its highest level since 2008, raising the odds that exporters will begin passing on higher prices and boost inflationary pressures in the global economy. The producer price index climbed 9% in May from a year earlier, driven by price increases for oil, metals and chemicals, the National Bureau of Statistics said Wednesday. The median forecast in a Bloomberg survey of economists was for an 8.5% increase. Consumer inflation increased only 1.3% from a year ago, missing an estimate of 1.6% and suggesting retailers aren’t hiking prices yet due to sluggish domestic demand.”
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