Not exact matches
Although Japan's market has rallied this year, Morgan Stanley's strategists
note that investors haven't fully priced in earnings growth,
wage inflation and support from external demand.
Note the recent slowing of the aggregate real
wage measure at the end of Figure 3, largely a function of faster
inflation growth (the energy effect
noted above) and some slowing of job and (blue - collar)
wage growth.
(
Note: the Phillips Curve relies on a very simple assumption that goods and services price
inflation stems from
wage inflation, and that
wage inflation occurs when domestic unemployment is low.
The Fed rate statement also
noted that «market - based measures of
inflation compensation remain low», a reference to soft
wage growth, which is at 2.7 %, lower than the 3 % rate that the Fed would like to see.
On the subject of
wage inflation, Rudolph - Riad Younes recently
noted, correctly I think, that in recent years, «wages, plus equity withdrawal from your house, was enough to support your living standard.
Hawkins
noted that the minimum
wage of $ 1.60 an hour in 1968 would be $ 10.67 today when adjusted for
inflation.
The assemblyman's office
noted he had co-sponsored a measure that would peg the then - $ 8 hourly minimum
wage to the urban
inflation rate, which has increased by an average of 1.7 percent annually over the last five years (and only increased by a tenth of a percent in 2015)-- which would have resulted in a far more modest rise in the pay floor.
(
Note: the Phillips Curve relies on a very simple assumption that goods and services price
inflation stems from
wage inflation, and that
wage inflation occurs when domestic unemployment is low.
There are clear signs of skills shortage in the graduate jobs market, in engineering and parts of financial services, and the Office for National Statistics has
noted that professional level roles are seeing
wage rises above
inflation.