Industrial production - January 2024

Since the pandemic, monetary policymakers have been facing an exceptionally complex environment. As inflation rose, we were confronted with profound uncertainty about how far it would go and how widely it would spread across the economy. And even as inflation has eased, uncertainty about its persistence has remained. The potential costs of mis-calibrating policy have been high, which is why we had to employ a policy framework that minimises the risk of mistakes. And we have done so by building our reaction function around three criteria: the inflation outlook, the dynamics of underlying inflation and the strength of monetary transmission. Though we conceived these criteria when we had low visibility of future inflation, they have also helped guide our decisions as inflation has fallen and forecasts have become more accurate. As Marie Curie once said, to thrive through the ups and down of life, “we must have perseveran post: ECB'S LAGARDE: AVERAGE WAGE GROWTH IN 2024 FOR ALL EXISTING WAGE CONTRACTS FELL FROM 4.4% AT THE TIME OF OUR JANUARY GOVERNING COUNCIL MEETING TO 4.2% AT THE TIME OF OUR MEETING IN MARCH post: ECB'S LAGARDE: WE EXPECT THAT A PICK-UP IN DEMAND, IF ACCOMMODATED BY FULLY UTILISING HOARDED LABOUR, WILL LEAD TO RISING PRODUCTIVITY GROWTH post: ECB'S LAGARDE: THE COMING MONTHS WILL HELP US FORM AN EVEN CLEARER PICTURE ECB'S LAGARDE: IT IS DIFFICULT TO ASSESS WHETHER THESE PRICE PRESSURES SIMPLY REFLECT THE LAG IN WAGES AND SERVICES PRICES AND THE PROCYCLICAL NATURE OF PRODUCTIVITY, OR WHETHER THEY SIGNAL PERSISTENT… post: ECB'S LAGARDE: UNLIKE IN THE EARLIER PHASES OF OUR POLICY CYCLE, THERE ARE REASONS TO BELIEVE THAT THE EXPECTED DISINFLATIONARY PATH WILL CONTINUE. ECB'S LAGARDE: IF THESE DATA REVEAL A SUFFICIENT DEGREE OF ALIGNMENT BETWEEN THE PATH OF UNDERLYING INFLATION AND OUR PROJECTIONS…

Producer input prices fell by 2.7% in the year to February 2024, up from a revised fall of 2.8% in the year to January 2024. Producer output (factory gate) prices rose by 0.4% in ...