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Next week's economics: 15-19 Dec

Next week's economics: 15-19 Dec
December 11, 2014
Next week's economics: 15-19 Dec

Is such low inflation sustainable? Some believe not, because the tight labour market will raise wage growth. We'll get an idea whether they're right on Wednesday. Although these numbers could show a rise in wage inflation, this is likely to still be lower than it was earlier this year. And the figures could also show that productivity growth is picking up, suggesting that higher wage costs are being offset by efficiency gains.

Low inflation should, in principle, boost retail sales. Thursday's official figures will tell us whether this is happening. Anecdotal evidence suggests that 'Black Friday' saw huge sales, but what of the rest of the month? Economists expect a small rise overall, which would leave sales volumes around 4.3 per cent higher than last November.

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