Euro area: the trend of energy commodity prices is affecting not only inflation, but also real growth. Based on our simulations, higher oil and gas prices will subtract four tenths of a percentage point to Eurozone GDP growth in 2022. Also, high uncertainty on the future evolution of energy prices is adding to uncertainty on the trend of GDP.

United States: A tight labour market is a new problem for the FOMC. The US labour market is tight, with excess demand starting to generate widespread upward pressures on wages. While demand for labour on a solid upside trend, supply has been roughly stable in the past year. The evolution of the labour force will be decisive for the risk of a wage-price spiral, and the timing of the rates’ lift-off.

Click the link below for the complete weekly economic report [19 November 2021] powered by Intesa Sanpaolo

Click the link below for the complete weekly economic report [19 November 2021] powered by Intesa Sanpaolo
https://lnkd.in/gm79hBjF