United States
Inflation in 18 charts
Inflation concerns are increasing on both sides of the Atlantic. The big question is whether this is temporary or longer lasting. Below we use 18 key charts to discuss how transitory inflation really is in the eurozone and the US
There are multiple stories influencing the inflation rate at the moment…
Source: ING Research
The US sees much more “current” inflation, with base effects more important in the eurozone
Source: ING Research
Eurozone inflation is at 2%, but mainly on energy effects for now…
Source: ING Research
Energy price impact on inflation is set to fall
Source: ING Research
But supply chain problems are leading to large build-up of pipeline inflation
Source: ING Research
In the US, supplier delivery times have also run up to record highs
Source: ING Research
US supply has a very hard time meeting demand at the moment, resulting in higher price expectations
Source: ING Research
Price expectations for goods have reached all-time highs on both sides of the pond
Source: ING Research
But for inflation to be longer lasting, wage growth seems key
Eurozone slack has been coming down though
Source: ING Research
And furlough schemes still hide slack in labour market figures
Source: ING Research
And vacancy rates have yet to return to pre-crisis levels except for education and health
Source: ING Research
Wage pressures have fallen over the course of the pandemic
Source: ING Research
In the US, labour market slack is deceiving…
Source: ING Research
The number of people out of the labour force that want a job has seen a much smaller increase than total labour market dropouts
Source: ING Research
Job openings have shot up in 2021, with hiring having a hard time keeping up
Source: ING Research
How temporary is the tightness in the US labour market? Rising quit rates are a sign of increased wage pressures
Source: ING Research
Eurozone wage growth is influenced by past inflation, increasing chances of a wage-price spiral on the back of a price shock
Source: ING Research
Modest fiscal support lowers chances of overheating substantially in the eurozone
Source: ING Research
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22 June 2021
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This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more
This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more