Rising labour costs have only the smallest impact on services inflation

Created
Thu, 01/06/2023 - 17:44
Updated
Thu, 01/06/2023 - 17:44
As the inflation episode starts to abate, central bank governors have been keen to advance narratives to justify why they would continue hiking interest rates, especially when it is pretty obvious that the drivers of the inflation were mostly coming from the supply-side and suppressing aggregate spending (via the higher rates) would not be a…