Discussions on wage dynamics in the Euro Area. The momentum is now higher (2%) but not sufficient to push core inflation on the upside. The enigma is not solved yet. That’s the analysis of this NY Times article.
Nevertheless, the example comparing France and Germany in the article is not totally convincing. There is still a lot to understand on the labor market.
Workers may finally be getting a bigger piece of the economic pie — at least in Europe. Just don’t ask why, or whether it will last.
In the decade since the financial crisis, much of the global economy has recovered and is back on stable footing. Companies are reporting record profits, unemployment levels are plummeting and overall global growth is back on track.
Wages in most developed countries, however, have barely budged.
Read the article here. nyti.ms/2mI1Hnv
Inflation figures at 1.1% in February do not trigger expectations of a fast and sharp change in the ECB’s monetary policy, and Mario Draghi and Peter Praet did not indicate that they were in any hurry to implement swift or sudden change in their comments at the end of last week.
The ECB’s monetary strategy is dependent on reaching inflation in line with its medium-term objectives: the 1.1% figure does not point in this direction.
The chart below shows the contribution from each of the three main sectors to the rise in inflation, and we can see that none of them display a marked uptrend. Continue reading
Following the link, you will read the Economic Outlook for August 2017 Economic Outlook-August 2017
The oil price in euro is lower than a year ago – Who can expect a stronger inflation momentum? The energy contribution to the inflation rate will converge to 0 and inflation will converge to its core rate (circa 1%) The ECB is in a comfortable situation and will not change rapidly its strategy