We're less convinced that
wage inflation pressures will actually emerge.
We also are experiencing low unemployment, which adds to
the wage inflation pressure.
Not exact matches
While
wage pressures remain modest, core
inflation is below target and
inflation expectations are contained almost everywhere, the implication is that they should all rise over time.
You may see
inflation remain below target, you may see a lack of
wage pressures, and you could be in a relatively steady state like that for some time possibly.
That's going to put even more upward
pressure on
wage inflation.
«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.
Restaurants are often laggards when it comes to adopting new technology, but rising labor costs due to higher minimum
wage and labor shortages coupled with food
inflation has some looking to solutions that can provide some relief from the increased
pressure on already tight margins.
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.
Core
inflation remains a steady bit less than 2 %, and wages were thus climbing only.5 % on their own power of traditional
wage pressure.
However, given the weakness in the bargaining power of so many in the workforce, along with some anxiety about price
pressures from
wage - push
inflation, such evidence must be scrutinized.
If the Fed were to continue hiking rates based on the current low rate of productivity growth for fear that
inflation would accelerate, that would tend to keep productivity growth permanently depressed by preventing
wage pressures from pushing businesses to investment in productivity boosting technologies.
In that sense, the Fed has the potential to make a huge structural difference in the economic lives of blacks and other minorities by heavily weighting the full employment part of the their mandate relative to the
inflation part, especially since there's still considerable slack in the job market, with lower -
wage, minority workers facing the brunt of it, and — importantly — little evidence of inflationary
pressure (if anything, the Fed has missed their
inflation target on the low side for a few years running now).
Slowing underlying
wage growth means that there is more
pressure for downward adjustments that are facilitated by
inflation.
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.
Given these conditions, a key issue for the Australian economy will be the extent to which the ongoing growth of demand might give rise to capacity constraints and, consequently, upward
pressure on
wage and price
inflation.
That suggests that underlying
inflation pressures from such things as
wage increases remain muted.
These conditions increase the likelihood of
wage pressures building beyond what is factored into the
inflation forecast.
It is possible, against a background of increasing
inflation and a strengthening labour market, that the survey is signalling some pick - up in underlying
wage pressures, but at this stage the extent of any such pick - up is difficult to assess.
The jobs data will be scrutinized closely for more clues about
wage pressures and signs of
inflation.
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.
Also, the need for interest rates to rise will be lessened to the extent that
inflation expectations remain well anchored and
wage pressures in stronger parts of the economy do not spill over to other parts.
Even
wage growth (which operates with a lag) is starting to move higher while underlying
inflation pressures remain persistent.
In a scenario with a reasonably benign world environment, these factors could see a strengthening of demand
pressures and hence upward
pressure on
wage and price
inflation.
Wage pressures are just going to naturally begin to build and that «s going to put upper
pressure on company «s cost and generate some
inflation.
SCHNEIDER: The number one metric and this gets back into my comments about optionality for the Fed, but the number one metric that the Fed is going to be focused on is the tightness of the job market and
wage pressures on the go - forward basis, so sure
inflation — headline
inflation has perked up a little bit.
The effects of rising import prices on
inflation diminish over the next few years, and domestic inflationary
pressures gradually pick up as spare capacity is absorbed and
wage growth recovers.
Inflation, in particular, is expected to pick up «consistent with the expectation that a further tightening in labour market conditions would gradually feed into higher
wage pressures.»
With
wage pressure and
inflation moving upward, the Fed signaling its intention to raise short - term interest rates, and the approaching end of an unprecedented era of falling interest rates, indications point toward higher rates ahead.
We have been decreasing our USD hedge ratio, but the overall level remains high as a reversal in recent
inflation softness and a pickup in
wage pressures could trigger support for the US dollar.
Our USD hedge ratio has moved modestly lower, but continues to be high as a continued reversal in recent
inflation softness and a pickup in
wage pressures could trigger support for the USD.
Our USD hedge ratio has moved modestly lower, but continues to be high as a reversal in recent
inflation softness and a pickup in
wage pressures could trigger support for the USD.
Consumer price
inflation is expected to remain well contained, with moderate
wage pressures and the removal of the carbon tax.
In five of the six countries where overall
wage pressures are lower,
inflation is forecast to be higher in 2017 than in 2016, which will limit real terms
wage growth.
Mexican firms are expected to benefit from more competitive wages (lower
wage pressure) in 2017, as
inflation is forecast to erode real
wage growth.
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.
Upward
pressure on
wage rates associated with tight labor markets, the impact of new fiscal policies, and the threat of rising tariffs on imported goods into the U.S. could very likely push
inflation past the Fed's targeted 2 % goal.
A rate much below the natural rate of unemployment is believed to fuel
inflation through upward
pressure on
wage rates.