Wage growth: what's the pay story doing to inflation?

Wages are the sticky part of inflation — services prices follow pay, and central banks watch pay growth closely. The labour market reports carry the numbers.

Wage growth: what's the pay story doing to inflation? — central bank rate path diagram
A central bank's policy rate path across recent meetings

What are you following?

  • the wage data you track across countries
  • how pay growth fits your inflation view
  • the pairs most sensitive to the labour story
Wage growth: what's the pay story doing to inflation? — risk-reward diagram
A risk-reward ratio of 1 to 2

Background: UK labour market and US jobs report.

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