Key issues

Inflation that never was: reasons for the flatter Phillips curve

Will greater wage growth lead to higher inflation in Spain?

During 2018, core inflation has remained stable despite the buoyancy of the labour market. This has been partly due to wages still not seeing significant growth. For the next few years, however, all the indicators suggest that the recovery in wages will gain momentum, which could put pressure on inflation. With this in mind, below we explore the link between wage recovery and inflation. Recent inflationary dynamics Spain will end 2018 with an inflation rate of around 2%, in a year marked by a rise after starting at around 1%...

Monthly Report - Focus