The University of Michigan’s consumer sentiment measure continues to climb to new highs not seen since the last economic peak. Inflationary and retail sale data for the month of March, however, do not support the rise in sentiment. Core consumer prices declined for the first time in over seven years accompanied by a steep drop in overall prices.
The United Kingdom released wage and inflation data this week showing unemployment of 4.7% and an increase in prices by 2.3%. The rise in inflation, above the Bank of England’s target, has nearly erased real wage growth for the average worker. On a broader spectrum, Eurozone industrial output declined unexpectedly in February by -0.3%.
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