Free Trial

MNI INTERVIEW: Supercore Shows Benign UK Disinflation Feasible

Ex-NY Fed international research chief on UK supercore inflation and the signals for inflation persistence.

MNI (LONDON) - Recent trends in supercore wages and a measure of supercore services inflation suggest that the UK economy could be on the path to healthy disinflation, though uncertainty remains high, former New York Fed head of international studies Gianluca Benigno told MNI.

High wages 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, said Benigno, adding that services inflation adjusts only slowly to shocks.

Keep reading...Show less
583 words

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.

MNI (LONDON) - Recent trends in supercore wages and a measure of supercore services inflation suggest that the UK economy could be on the path to healthy disinflation, though uncertainty remains high, former New York Fed head of international studies Gianluca Benigno told MNI.

High wages 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, said Benigno, adding that services inflation adjusts only slowly to shocks.

Keep reading...Show less