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We review the recent dynamics in services inflation in Spain and their relationship with wages and energy, two key factors for understanding what pattern this component will follow in the coming months.

A real-time analysis of wage incomes shows that, in 2022, the impact which the pandemic had on inequality has been undone and that it now stands at a very similar level to that which existed prior to the pandemic. 

While Chinese exports have grown at a record pace since 2020, domestically the situation is different: investment remains weighed down by the crises in the real estate sector and consumption is struggling to take off. What is the reason for the weakness of consumption and the lack of consumer confidence in China?

The government has presented a second action plan to cushion the economic impact of the current high inflation. According to government estimates, this second package will have a budget impact of more than 9 billion euros (0.7% of GDP), which includes 5.5 billion in new expenditure and 3.6 billion in reduced revenues due to cuts in electricity taxes.

The protectionist agenda and the withdrawal of multilateralism by the new US administration could benefit foreign investment in the euro area, thanks to its stable regulatory framework, confidence in the independence of the ECB and plans to boost spending on defence and infrastructure.