Global economy: Will higher wages prolong inflation?

Price growth remains stubbornly high and central bankers worry that pay settlements will keep it that way

Members of the National Education Union striking over pay in Leeds, Britain, on Feb 28, 2023. PHOTO: EPA-EFE
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More than 340,000 Americans will see an increase in their monthly pay cheque on Thursday after Walmart, the biggest private-sector employer in the United States, raised its minimum hourly wage to US$14 (S$19). The retailer’s move will in effect set a new floor for pay in many US states.

On the other side of the Atlantic, as many as half a million United Kingdom public-sector workers have taken industrial action over pay and Germany’s public-sector unions are also calling strikes. In Hungary and Poland, wage growth has reached double digits.

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