—the entire index—rose by only 0.1% in November. That makes two months of very surprisingly lower-than-expected inflation rates. The reduction in inflation has been powered by good prices: goods prices have now fallen over the past two months by a total of 0.9%.
And it is not as though wage pressure is pulling services inflation up: nominal wage inflation has been less than services price inflation for pretty much all of 2022. While the labor market is “overheated” in the sense that nominal wage increases are still running above 5% per year, this appears more a response to price inflation than a driver of it. Even at today’s low unemployment rate, workers in aggregate do not appear to have the market power to demand a larger share of the income pie.
The Team Transitory narrative of 2021 was that we needed to re-join the highway at speed, that when you accelerate you leave rubber on the road, and that it is silly to be surprised by and then complain about the skidmarks. A central bank with credibility should not obsess about hitting its inflation target every single year, but rather let inflation vary from year to year in whatever pattern, maximizes, employment, purchasing power, and growth.
This fear gained great urgency in 2022, when Vladimir Putin’s attack on Ukraine produced substantial energy and food price shocks. The double whammy of commodity supply-shock and after plague-reopening shocks greatly raised the risks that expectations of inflation would become entrenched, generate a repeat of the 1970s, and require a 1982-magnitude recession to restore the economy to balance.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Boston Housing Advocates Pleased With Biden's Federal Plan to Reduce HomelessnessThe White House aims to reduce homelessness 25-percent by the year 2025. The Federal Plan to Prevent and End Homelessness was released Monday, with three solution pillars—housing and supports, homelessness response, and prevention. The wide-sweeping plan was released along with the U.S. Department of Housing and Urban Development’s (HUD) 2022 Annual Homeless Assessment Report (AHAR) which found 582,462 people were…
Source: NECN - 🏆 20. / 71 Read more »
Mass. Doctor Arrested, Accused of Punching Officer During Jan. 6 Capitol RiotA Massachusetts doctor who allegedly punched a police officer during the deadly Jan. 6 riot at the U.S. Capitol was arrested Tuesday, federal prosecutors said. Dr. Jacquelyn Starer, 68, is due in federal court in Boston Tuesday on charges including felony civil disorder and assaulting, resisting or impeding officers, according to the Department of Justice. The FBI was tipped off… Look at all the hate on display in her expression. She deserves to spend years behind bars. ogden_robyn She's a doctor who refused the RABIES vaccinations too. She's about to go through some things.....
Source: NECN - 🏆 20. / 71 Read more »
Seroprevalence measurements reveal a higher incidence of asymptomatic SARS-CoV-2 infections among residents of three federal German statesResearchers measured the seroprevalence against SARS-CoV-2 in blood donors from the states of Hesse, Lower Saxony, and North Rhine-Westphalia in Germany to determine the incidence of undetected asymptomatic SARS-CoV-2 infections.
Source: NewsMedical - 🏆 19. / 71 Read more »
Epic Games to pay over $500 million to settle Fortnite FTC caseEpic Games has agreed to pay over $500 million to settle charges levied by the US Federal Trade Commission over allegations surrounding privacy violations and tricking users into making unwanted charges. Hey bro I'm waiting for my Xbox wrap up It would be nice if Fortnite was put on hold. Just so some of the other games EpicGames could come out. They look 100x better. I'm not saying pull the game, just give other games a chance. But at 130 million 1 game mode N 2 billion in 22 good luck. That would explain why my son's account suddenly had parental controls thrust upon it a week or so ago (which wiped out his friends list and screwed up a bunch of other shit). And now *my* account has a parental pin set on it too, for some reason?
Source: TrueAchievement - 🏆 31. / 68 Read more »
Fortnite maker Epic Games slapped by $520m FTC fineThe US Federal Trade Commission has hit Fortnite maker Epic Games with a record-breaking penalty of $520m (£427m)… I'm convinced the ftc is just out to sabotage the gaming industry at this point. Bunch of goofs. Ouch. But then again, that's what, a week's worth of income for them? Sooo.... They were asked to empty their wallets for the amount of money that was in them AT THE TIME...? Go big or buy a lootbox!
Source: eurogamer - 🏆 68. / 61 Read more »
What is Schumacher’s best hope for an F1 seat in 2024?Mick Schumacher hopes to use his new role as Mercedes’ reserve driver to help him land a full-time F1 seat for 2024. But what realistic options does he have?
Source: CRASH_NET_F1 - 🏆 100. / 51 Read more »