Sentences with phrase «wage inflation as»

Of course, you have to hope that we have wage inflation as well as price inflation.

Not exact matches

Major central banks» 2 percent inflation target appeared elusive as wage growth hasn't caught up with a stronger economy and jobs market.

The gradual shrinkage of the working - age population in developed nations as well as China has so far failed to stoke inflation through wage increases.

As they won wage increases higher than the current rate of inflation they would, for a short time, gain real wage increases.

He made a crucial claim, new at the time, which today is taken for granted: That low unemployment spurs wage rises, those wage rises in turn spur inflation, and that inflation then spurs further wage rises down the line, for as long as the rate of inflation continues to grow.

Those gains would be wiped out as their wage gains spurred new inflation, of course.

«Prospects for renewed gains, other than a relief rally following the election results, would require somewhat larger wage increases and continued job growth as well as the maintenance of low inflation.»

Further rises in the cost of basic inputs such as energy have since driven consumer inflation up, even though the country has the same weak wage dynamics as those seen elsewhere in the developed world.

This is particularly significant in the context of the labor market, considering that inflation — and, by extension, wage inflation — is arguably the most important input for the Federal Reserve as it decides how quickly to raise interest rates.

However, altering the minimum wage every year based on average wages or realized inflation rates is difficult in practice, as there is a lag in collecting that data.

Incoming Federal Reserve chair Jerome Powell, chosen by U.S. President Donald Trump to keep the recovery humming, appears set to let an expected trillion - dollar tax cut run its course through the economy as weak wage growth and inflation buttress his view that the economy remains underpowered.

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.

The incoming Fed chair appears set to let an expected tax cut run its course as weak wage growth and inflation buttress his view that the economy remains underpowered.

Since wage growth tends to occur as inflation inches higher, investors want to own the companies best positioned to withstand that.

As Posen pointed out during a speech in Aberdeen, Scotland, there is generally «little or no credit growth, little wage growth beyond productivity, little evidence of rising inflation expectations» in Western economies.

«The first quarter's slowdown was led by consumers, whose incomes are under pressure from slowing employment and wage growth as well as rising inflation.

Forget inflation fears — Federated sees earnings as the market story of year Fed's Quarles says it's been «quite some time» since the economy looked this good Fed sees economy past full employment but with only «moderate» wage gains

Bond yields have been rising as interest rate expectations have been rising, and the wage number confirms signs of wage inflation.

Inflation is expected to breach its target this year as a tightening labor market boosts wage growth.

Expect the Federal Reserve to raise its interest rate targets once between now and then — but only once, as U.S. economic growth stays steady but slow, while inflation and wage growth also remain modest.

«It's hard to imagine a sudden spurt in inflation when wage developments are as moderated as they are,» he said.

Uncertainty shock = lower US GDP estimates; markets will price in EU fragmentation; Fed likely to pass in Dec; ultimate growth impact of Trump will depend on whether his protectionism or Keynesianism triumphs; either way Trump will boost inflation / stagflation expectations as electorates say end wage deflation via immigration controls, trade protectionism, fiscal spending.

The January year - over-year wage increase originally was reported as 2.9 %, the best since 2009, and an uptick that fueled fears of higher inflation.

They see flat inflation and wage stagnation as signals that the economy still has a ways to go before needing a big shift in monetary policy.

The stock market opened way down, continuing last Friday's selloff, though it has climbed back since the open — implying the return of volatility — as skittish investors continue to fear the sequence I describe in this AM's WaPo: tight labor market, wage pressures, higher interest rates, inflation, lower profit margins.

The wage pop [last Friday's 2.9 % growth in hourly wages] spooked the markets because investors, already skittish as valuations were a bit steep (though not as bad as people have been saying, given strong current and expected corporate earnings), envisioned this sequence: wage growth gooses price growth (i.e., inflation), which raises both market and Federal Reserve interest rates, which slows growth and shaves corporate profit margins.

As you've pointed out, your 2 % inflation target plus 1.5 % trend productivity growth allows for noninflationary nominal wage growth of 3.5 %.

OTE'ers know that I'm far from uncritical of Fed policy, especially lately, what with their normalization campaign occurring as inflation is drifting down and wage growth is kinda stalled out at around 2.5 %.

While modest wage inflation bodes well for the Japanese stock market on average, the sectors best positioned to benefit are those in which wages as a percentage of revenue are low, typically in the single to low - double digits.

Thus, until the advent of the global financial crisis, mainstream authors paid little attention to the fact that wage growth had lagged behind the sum of productivity growth and inflation, in most countries and for several decades, and that as a result wage shares had fallen.

-- As the size of big business is allowed to grow, due to lack of anti-trust enforcement, their ability to counter wage increases with arbitrary price increases, fueling an inflation spiral, grows unchecked.

But just because you don't see wage pass - through to prices doesn't mean that full - resource utilization, as proxied by low unemployment, won't drive up inflation.

Ultimately, we see the dollar weakening against the euro as real rates in the Euro Zone become more positive and strengthen versus the yen because inflation in Japan is picking up due to accelerating wage growth.

Shorter - term yields in Canada are also forecast to increase in 2014 as a strengthening in economic growth, tightening labour market conditions and accelerating wage growth fuel a steady, albeit slow, increase in inflation.

It is difficult to understand why the record burden of consumer debt will be impervious to a rising unemployment rate, particularly when companies are facing a substantial acceleration in wage inflation in recent months as they try to shore up profit margins - making substantial new layoffs inevitable.

But later in the month, when the inflation numbers for the previous month are released, we should really say something about real, as in inflation - adjusted, wage growth.

[158] Other causes include the rise in non-cash benefits as a share of worker compensation (which aren't counted in CPS income data), immigrants entering the labor force, statistical distortions including the use of different inflation adjusters by the BLS and CPS, productivity gains being skewed toward less labor - intensive sectors, income shifting from labor to capital, a skill gap - driven wage disparity, productivity being falsely inflated by hidden technology - driven depreciation increases and import price measurement problems, and / or a natural period of adjustment following an income surge during aberrational postwar circumstances.

France's Socialist government announced the first real - terms increase in the minimum wage for six years on Tuesday, but limited the rise to 0.6 percentage points above inflation as it sought to balance election promises with fears of damaging employment.

In today's UK market, the cap rate distribution curve has flattened out, consumer and wage inflation is out of synch, and investors are not getting paid enough to take core risk as there is little prospect for net operating income (NOI) growth in the current lease regime.

Companies are still very focused on currency trends that are impacting their business as well as on margin pressures — whether it's cost inflation through wage growth or price deflation and the compressing of margins.

That suggests that underlying inflation pressures from such things as wage increases remain muted.

CITI: Given continued soft inflation readings, average hourly earnings (AHE) remains the focus of the payrolls report as markets look for evidence that wage pressures are building.

Over time, as the US Dollar continues to depreciate, it will bring higher inflation, lower real growth rates and a reduced standard of living for most American wage earners.

One possible channel people have mentioned is that of higher wage claims, pursued as a result of the pick - up in CPI inflation, which then add to costs and prices, and so on.

While a low unemployment rate can indicate tight labour - market conditions, the 2017 average hourly wage of full - time and part - time employees combined grew by only 1.7 per cent — the lowest year - over-year growth since 1998 and more or less at the same rate as consumer price inflation.

Even as a national average it's still likely to exceed wage inflation.

To me, inflation is a money - price - wage spiral not a wage - price spiral as with the Phillips curve.

The basic catalyst for the correction is well known: better - than - expected headline wage inflation numbers — as noisy and oft - revised as they are — spooked the bond market, which then rippled through the equity market.

You were saying just immediately come through in terms of bonus payments and some increase in wages, but they want to see on a sustained basis and so, getting some of those wage indicators, average hourly earnings, things like that on an upward trajectory, not as flat, but upward trajectory over the next quarter or two, will actually give some sustenance to the Fed to actually continue to move forward, which they likely will, but I am saying that's really what they are focused on in terms of that wage — in terms of that inflation metric.

The main challenge facing the ECB today is no longer the collapse in commodity prices, but a more fundamental mix of concerns revolving around the strength of the recovery, the crucial bank credit channel as well as potential second - round effects on wage growth and (core) inflation.