Inflation Brews for U.S. Producers While Services Wages Pick Up
“Inflation continues to brew in America’s industrial heartland as growing materials shortages cascade into record-long delivery times and leave manufacturers struggling to keep pace with an energized economy. As producers attempt to navigate supply-chain pitfalls for the commodities necessary to produce their wares, wage growth is beginning to percolate. A recent Labor Department report showed the largest quarterly increase in worker pay at companies since 2003.”
ECB Official Calls for Accepting Inflation Overshoot, FT Reports
“The European Central Bank should change its policy and accept an overshoot of its inflation target to make up for years of sluggish price growth, the Financial Times reported, citing Bank of Finland Governor Olli Rehn, who is also a member of the ECB Governing Council. Changes in the euro area’s labor market and world economy had weakened wage inflation pressures, and it “makes sense” to accept a certain period of overshooting while taking into account the history of undershooting, Rehn said, according to the report.”
Tens of Millions Plunge Into Poverty in Covid-Ravaged India
“After dipping into his savings to weather India’s snap pandemic lockdown last March, Manoj Kumar was just getting his head above water again earning 600 rupees ($8) a day as a construction worker in the tourist hotspot of Goa. He’d squirreled away enough for a trip last month to his native village in Bihar some 1,490 miles away for a wedding. He’s still there, stuck in one of the nation’s least developed states, as a fierce second Covid-19 wave triggers the world’s worst health crisis and prevents his return. On a lucky day, he’ll land some odd jobs that fetch him as much as 300 rupees. But there aren’t too many of those chores left. So he’s taking loans to feed and clothe his wife and three kids.”
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