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Do Wages Drive Prices, or Vice Versa? The Answer Matters for Interest Rates
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FRANKFURT—Even as some prices such as for gasoline signal tentative easing of inflation pressure, the Federal Reserve and other central banks remain preoccupied with one that shows the opposite trend: the price of labor.
Soaring pay growth, officials worry, could prompt businesses to keep raising prices to offset higher labor costs, producing a wage-price spiral.
Read more on wsj.comAbout this in other media
Markets warn sterling slump could lead UK interest rates to triple by next year theguardian.com /2 years ago
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