MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

MNI: PBOC Sets Yuan Parity Lower At 7.1339 Thurs; -1.06% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1339 THURS VS 7.1342

MNI BRIEF: Bank of Korea Keeps Policy Rate At 3.50%

MNI: BANK OF KOREA KEEPS POLICY RATE AT 3.50%: PRESS

Japan May Machine Orders -3.2% M/M

MNI JAPAN MAY CORE MACHINE ORDERS -3.2% M/M; APRIL -2.9%

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Services PMI points to less pass through from NLW increase to inflation

UK DATA
DataHomepagemarkets-real-timeData BulletBulletMarketsFixed Income BulletsForeign Exchange Bullets

Some interesting commentary on the NLW and its impact on costs / prices in the press release. The early indications on this seem to be not as concerning to the MPC as could have been feared, as it looks as though the passthrough from higher wages hasn't had a huge impact:

  • "Higher wages, partly driven by a considerable rise in the National Living Wage in April, resulted in the sharpest overall increase in input costs since August 2023. In contrast, pricescharged by service sector firms rose at the slowest pace for three years."
  • "Around 39% of the survey panel reported an increase in their average cost burdens in April, while only 1% registered a decline. The resulting seasonally adjusted index signalled that cost inflation accelerated since March to its steepest for eight months."
  • "Efforts to pass on higher business expenses to clients resulted in another robust rise in average prices charged by service sector companies. However, the overall rate of charge inflation eased to its lowest since April 2021. There were reports that competitive pressures had constrained pricing power and led to some promotional discounting."
183 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.

Some interesting commentary on the NLW and its impact on costs / prices in the press release. The early indications on this seem to be not as concerning to the MPC as could have been feared, as it looks as though the passthrough from higher wages hasn't had a huge impact:

  • "Higher wages, partly driven by a considerable rise in the National Living Wage in April, resulted in the sharpest overall increase in input costs since August 2023. In contrast, pricescharged by service sector firms rose at the slowest pace for three years."
  • "Around 39% of the survey panel reported an increase in their average cost burdens in April, while only 1% registered a decline. The resulting seasonally adjusted index signalled that cost inflation accelerated since March to its steepest for eight months."
  • "Efforts to pass on higher business expenses to clients resulted in another robust rise in average prices charged by service sector companies. However, the overall rate of charge inflation eased to its lowest since April 2021. There were reports that competitive pressures had constrained pricing power and led to some promotional discounting."