Recent inflation developments and wage pressures in the euro area and the United States

Anna Beschin, Katalin Bodnár, Ramon Gomez-Salvador, Eduardo Gonçalves, Marcel Tirpák and Marco Weißler

Economic Bulletin Boxes, 2024, vol. 3

Abstract: Headline and core inflation levels and momentum dynamics in the euro area are currently somewhat weaker than in the United States, reflecting buoyant rent inflation and consumption growth in the United States but also the different cyclical positions of the two economies. Core inflation remains elevated overall in both economic areas, due notably to high levels of services inflation. At the same time, goods inflation has declined considerably, in line with the normalisation of disrupted supply chains at the global level and lower commodity prices. Labour costs started moderating earlier in the United States, with euro area wage growth peaking later and productivity growth being muted by cyclical and structural factors. JEL Classification: E24, E31, E58

Keywords: core inflation; headline inflation; wages (search for similar items in EconPapers)
Date: 2024-04
Note: 2881411
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