Money markets in the U.S. are anxious that high inflation may not go away anytime soon, after an unforeseen 0.5% rise in wages in May.
Source: St. Louis Fed
SPY is up 0.09% EURUSD is up 0.02%
Reopening of the economy after the pandemic has come with increasing consumer prices.
In May, inflation is expected to rise by a further 0.4%, taking annual inflation above the 4.2% recorded in April.
Policy makers and economists believe the rise in prices is temporary, but the rise in hourly wages raises new controversy over how long the inflation may last.
Leave a Reply