The bank predicts wages will accelerate 3 percent next year.Fatter wallets should support global economic growth already enjoying its best upswing since 2011, while encouraging central banks such as the Federal Reserve to keep tightening monetary policy before inflation takes hold. Average hourly earnings for private American workers climbed 2.9 percent over the year in August, the most since the recession ended in mid-2009. Again, companies are feeling a pinch. Even if pay growth does continue, any accompanying rise in inflation will eat into the ability of consumers to spend by pressuring so-called real wages.One reason to expect pay to stay weak is that companies are increasingly offering more flexible working arrangements, longer vacations and better benefits instead of higher wages. “This would be a surprise for market participants.” - Bloomberg

Source: The Star September 17, 2018 01:52 UTC