The 0.7% jump in real consumption in April, together with the upward revision to March’s gain leaves consumption on track for a 5% annualised gain in the second quarter. Thanks to a rapid rebound in exports, GDP growth is set to rise by close to 5% too. Elsewhere, suggestions that corporate greed have been the main driver of inflation are wide of the mark. Most of the increase in costs has been driven instead by unit labour costs, as has been the case over the past 40 years.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.