Analysis: U.S. inflation expectations will remain low

04/19/2011 | Economist (free content), The

Inflation expectations in the U.S. are increasing modestly, but the weakness of the labor market makes a dangerous acceleration unlikely, according to The Economist. Research by the International Monetary Fund and data published by the Federal Reserve Bank of New York suggest almost no chance of wages increasing sharply. "Given the state of the American labour market, there is very little upward wage pressure, and therefore very little risk of a wage-price inflation spiral," the magazine noted.

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Economist (free content), The

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