Free Trial

Macklem: Wage Growth Stabilization Gives Hope But Need Further Decline

CANADA

Paraphrasing the Q&A:


Macklem: One of the things that is giving us confidence that inflation is coming down is that risks of a wage-price spiral have diminished/ Wage growth is running at 4-5% and looks to have plateaued in that range. Business and household inflation expectations remain elevated but fewer people expect it to remain high for a long-time, reducing expectations at the tail. However, if wages running in the 4-5% range were to be sustained, that’s not consistent with inflation getting back to the 2% target without surprisingly strong productivity growth. We’ll be watching wage growth closely.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.