Fighing inflation: the top priority
The surge in input costs –?energy, metals, agricultural commodities, etc. – has not ended yet and will continue to drive up inflation in the short term. February’s record of 7.9% y/y is likely to be broken soon, especially since the housing market is also overheating, which in turn is pushing up rent, which accounts for a third of the price index.
With the unemployment rate dropping to 3.6% of the active population in March, and with the participation rate in the 20-64 age group near pre-pandemic records, the job market has reached full employment. Wage pressures are growing, especially in the sectors where most of the post-crisis hiring difficulties can be found: hotel & restaurant services, transport & storage, and retailing, among others. Wage growth is also higher than average in professional business services, which account for nearly a quarter of employment in the private tertiary sector, and are at the heart of the digital transformation.
