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

Author

Listed:
  • Beschin, Anna
  • Bodnár, Katalin
  • Gomez-Salvador, Ramon
  • Gonçalves, Eduardo
  • Tirpák, Marcel
  • Weißler, Marco

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

Suggested Citation

  • Beschin, Anna & Bodnár, Katalin & Gomez-Salvador, Ramon & Gonçalves, Eduardo & Tirpák, Marcel & Weißler, Marco, 2024. "Recent inflation developments and wage pressures in the euro area and the United States," Economic Bulletin Boxes, European Central Bank, vol. 3.
    • Handle: RePEc:ecb:ecbbox:2024:0003:1
    Note: 2881411
    as

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    More about this item

    Keywords

    core inflation; headline inflation; wages;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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