In our January Seaford Macro Update, we focus on inflation and wages in selected G7 countries. While inflation generally outpaces wages for the time being (meaning that real wages are negative), wage growth resembles the famously slow-starting sprinter who would nonetheless continue to gather pace after his rivals began to run out of steam.

Likewise, we expect headline inflation to taper off in the course of 2023. Wage growth will continue to gather pace, with real wages turning positive in the middle quarters of the year.

Read the Seaford Macro January Update.