- Rising inflation expectations are a concern.
- Inflation expectations remain anchored.
- Slack is opening in the UK labour market.
- Disinflation continues to be underway.
- Wage growth is above what our models can explain.
- Worried supply is weaker than expected.
- I am more worried about supply than demand.
- It’s possible people are now more sensitive to inflation.
- The risk is that this leads to second-round effects.
- There are moderate upside risks to gas prices.
- The quality of UK stats is another source of uncertainty.
- Wage growth is not slowing as fast as I’d like to see.
- Tariffs on balance are disinflationary for UK.
- Trade diversion could happen very quickly.
- I am worried about productivity growth on the downside.
She’s not saying anything material here as she’s just keeping a keen eye on the risks given the strong uncertainty of this period.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
