My interview with MNI on UK inflation

This interview is based on the “At the Core of UK Inflation” where we construct a supercore CPI and wage pressure measure for the UK economy.

The interview is under a paywall but the main points are the following:

• High wage growth is most likely driven by the recovery of purchasing power lost during recent inflation, rather than that increases in pay are driving a fresh inflationary impulse;

• Covid-specific factors have driven wage behavior in the recovery phase. Recent wage moderation at the aggregate and supercore level is a sign of normalization in the labor market.

• Further disinflation in supercore CPI is to be expected albeit at a slow pace reflecting slow price adjustments in supercore sectors.

Here is the link:

https://marketnews.com/mni-interview-supercore-shows-benign-uk-disinflation-feasible