BIS economists see ‘limited’ evidence of wage-price spiral
But institutional shifts and changing expectations could set stage for greater price increases
There is only “limited evidence” that major economies are on the “cusp” of a wage-price spiral, economists from the Bank for International Settlements say.
Nevertheless, they warn a sudden shift to a high-inflation regime remains possible. Several areas of the economy that could trigger such a shift are currently showing potential warning signs.
The bulletin article explores the pre-conditions for a wage-price spiral. Both wages and prices have been on the rise in major economies, and labour
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