BOE’s Bailey: We are seeing currently a much greater dispersion of wage settlements

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Comments from BaileyBailey asks "What if this is the beginning of a more far-reaching structural change in the economy which alters relative pay across occupations?"Bullets:The rate of recovery has slowed over recent months, and that slowing is continuingRecovery in some consumer-facing services appears to have been delayedSurveys indicate the impact of supply-chain issues is broadening outwe think the rate of growth of earnings in an underlying sense is probably around the 4% level Much of the latest rise in inflation reflects base effects from last yearOur view is that the price pressures will be transientHere's his key passage on inflation:What is crucial here is whether and how expectations of future inflation respond to these supply shocks, and thereby embed rising inflation. The most commonly talked about mechanism goes from higher inflation expectations, to companies feeling able to raise prices and employees asking for higher
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