Signs of wage inflation were present last month.
Bond yields have been rising as interest rate expectations have been rising, and the wage number confirms
signs of wage inflation.
Federal Reserve Chairman Jerome Powell said Thursday that there are no «decisive»
signs of wage inflation yet.
Not exact matches
The FOMC should remain data dependent and defer its first increase in policy rates until there are greater
signs of wage or price
inflation than are currently evident.
Powell in statements throughout the year, culminating with his recent Senate confirmation hearing, has been clear he sees little risk
of inflation that would prompt the Fed to raise rates faster than expected, and takes weak
wage growth as a
sign that sidelined workers remain to be drawn into jobs.
With the economy already at full employment and more and more
signs of higher
wage and unit labor cost
inflation, the risks are rising that it will be PCE moving up to CPI.
The jobs data will be scrutinized closely for more clues about
wage pressures and
signs of inflation.
In a
sign of both strong economic growth and the potential for higher
inflation, small businesses reported that
wage grew at the fastest rate in two years.
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.
Economists also cite retailers» lack
of pricing power and still - tepid
wage gains as factors keeping price pressures subdued, with the July results another
sign inflation may take longer to reach the central bank's goal even as it prepares to wind down asset holdings.