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Inflation: Why is it so sticky in the UK?

Jun 13, 2023
A labor shortage and a relatively strong economy contribute to high prices. Some experts worry about inflationary expectations.
A food stall at an outdoor market in London. Food inflation recently hit a 45-year high in the U.K.
Susannah Ireland/AFP via Getty Images

Wage growth seems to be slowing. But is it enough to please Fed policymakers?

Nov 4, 2022
The central bank watches for signs of wage inflation because it can drive price inflation.
Fed Chair Jerome Powell said wage gains have been “well above” the level needed to come down to Fed’s 2% inflation target.
Chip Somodevilla/Getty Images

Is a wage-price spiral driving inflation?

May 4, 2022
Wages are rising fast, but not as fast as prices. When inflation expectations drive workers' demands for higher pay, inflation can spiral out of control.
Rising prices can motivate workers to seek higher pay. Both are increasing quickly.
Joe Raedle/Getty Images

Consumers are on an inflation expectations roller coaster

Feb 14, 2022
Even though sentiment has tanked, a New York Fed survey finds that consumers expect inflation to ease in the future.
Consumers are feeling the pinch of inflation pretty much any time they open their pocketbooks — but they're optimistic that price gains will ease in the coming years.
Joe Raedle/Getty Images

The statistic Fed Chair Powell uses to keep an eye out for wage inflation

Jan 26, 2022
The central bank will scrutinize the employment cost index for 2021’s fourth quarter for signs that rising pay could fuel rising prices.
Federal Reserve chief Jerome Powell has turned his efforts toward containing inflation. The employment cost index is one of the economic indicators the Fed examines in setting monetary policy.
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