Staff of Reuters 1 minute ReadFILE PHOTO: A woman enters a shop with a wide choice of merchandise in Berlin, Germany, on April 22, 2021, during the coronavirus disease (COVID-19) pandemic. Annegret Hilse/REUTERS (Reuters) – LONDON (Reuters) – According to Citi’s global markets strategist Matt King, a rise in inflation in major nations is just temporary, with wage increases remaining the missing ingredient. Inflation in the eurozone is currently at 1.9 percent, which is precisely on pace with the European Central Bank’s aim of “below but close to 2 percent.” Consumer prices in the United States increased by 5% in the year to May, the largest year-on-year increase in 13 years. Such data has sparked a debate among policymakers and investors about whether the recent rise in inflation is only a blip on the radar or a harbinger of a long-term upward trend after years of stagnation. “I’m in the transitory camp,” King said at a Citi media summit. “I’m not convinced that what we’re seeing is nothing more than bottlenecks.” “You need a long-term wage price cycle, and I’m not certain there’s one here.” Dhara Ranasinghe contributed reporting, while Thyagaraju Adinarayan edited the piece./n
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