Consumption to drop as wages fail to keep up with inflation, report says | Business Post

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Consumption to drop as wages fail to keep up with inflation, report says. ellied798 reports.

A busy Grafton Street in Dublin last week: inflation in the euro area is expected to range between 5.5 per cent and 7 per cent for most of this year, before edging lower in the final quarter of 2022. Picture: Fergal Phillips

Consumption will drag lower this year, as higher prices for energy and food squeeze real wages, according to the latest Global Output report from Barclays.With inflation increasing, real wages across most of Europe are likely to decline “significantly” in 2022, according to a report from the bank.

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