ONS Chief Economist: Sustained wage gains threat to UK price outlook – MNI


The UK prices pressures could mount in coming months and any sustained increase in wages could become problematic for the country’s price outlook, Grant Fitzner, Chief Economist at the Office for National Statistics told MNI in an interview.

Key quotes

"We're seeing a period of pent-up demand and a shortage of supply, and we don't know how long that will last.”

"On goods, there's a limit to how many sofas and TV's we can buy. We don't know as much about services, but there are natural limits to these things. I would expect [consumption] patterns to return to normal."

"We're not saying that it's all transitory.”

“There is some evidence that supply constraints could last," making special mention of the global semi-conductor shortage. But public expectations of inflation remain subdued.

"We're not seeing any significant pick-up in expectations.”

"We're not seeing any red lights flashing yet."

"The underlying pace of wage growth is" approximately 3%, a level he considers to be "not inflationary."

Wage growth could become problematic "if you start to see high settlements, but we're not seeing that at the moment.”

Market reaction

GBP/USD is keeping its range near daily lows of 1.3868, as it loses 0.18% on the day.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles around 1.17 on yield-fueled dollar strength

EUR/USD is pressured under 1.17 as the dollar benefits from higher US Treasury yields. US Durable Goods Orders beat estimates with 1.8%. The center-left SPD came on top in the German elections.

EUR/USD News

GBP/USD hovers around 1.37. dismissing UK petrol crisis

GBP/USD is trading at around 1.37, as sterling shrugs off the drying up of some petrol stations due to Brexit-related lorry driver shortages.

GBP/USD News

XAU/USD eyes $1767 critical supply zone

Gold is easing off the higher levels, as the risk-on market environment amid ebbing China Evergrande fears and US stimulus optimism dulls the safe-haven appeal of the bright metal.

Gold News

Huobi to stop servicing Chinese users as China vows strict crackdown on crypto

A few months after the cryptocurrency mining ban in China, the country issued another update last week, reiterating that digital assets are banned and crypto exchanges are prohibited.

Read more

Apple: Is the new iPhone 13 a reason to buy?

Apple stock barely registers any change on Friday. AAPL closes at $146.92 for a tiny gain. Stocks are struggling for upside momentum from the latest dip.

Read more

Forex MAJORS

Cryptocurrencies

Signatures