Thanks for sharing - how do you see the recent wage growth stats feeing into their decision making vs what you lay out here re. service/rental inflation? Seems like no straightforward road ahead tbh.
Thanks for your comment. The issue seems to me to what extent wage inflation is driving the service component of inflation ex-rent if I understand correctly your comment. I am actually working on constructing such a supercore measure of inflation and the corresponding wage measure to discuss exactly this issue. Hopefully it will be ready soon.
Thanks, Gianluca. And yes, that was correct i.e. to what degree is wage inflation impact service inflation. I think the UK is seeing ever so slight labour tightening, so perhaps wage growth will slow a lot more in the coming months allowing for cuts.
Hi Jason: getting back to your request with a more formal analysis. In the latest blog we examine the extent to which wage growth in the service sector is contributing to service inflation. I hope you find it informative. Here is the link:
Thanks for sharing - how do you see the recent wage growth stats feeing into their decision making vs what you lay out here re. service/rental inflation? Seems like no straightforward road ahead tbh.
Thanks for your comment. The issue seems to me to what extent wage inflation is driving the service component of inflation ex-rent if I understand correctly your comment. I am actually working on constructing such a supercore measure of inflation and the corresponding wage measure to discuss exactly this issue. Hopefully it will be ready soon.
Thanks, Gianluca. And yes, that was correct i.e. to what degree is wage inflation impact service inflation. I think the UK is seeing ever so slight labour tightening, so perhaps wage growth will slow a lot more in the coming months allowing for cuts.
Look forward to the upcoming post you mention.
Hi Jason: getting back to your request with a more formal analysis. In the latest blog we examine the extent to which wage growth in the service sector is contributing to service inflation. I hope you find it informative. Here is the link:
https://gianlucabenigno.substack.com/p/has-wage-growth-fueled-inflation?r=nm3g