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Global economy: Will higher wages prolong inflation?

By Delphine Strauss
Financial Times·
12 mins to read

Price growth remains stubbornly high and central bankers worry that pay settlements will keep it that way.

More than 340,000 Americans will see an increase in their monthly pay cheque tomorrow after Walmart, the biggest private-sector employer in the US, raised its minimum hourly wage to US$14 ($22). The retailer’s move will in effect set a new floor for pay in many US states.

On the other side of the Atlantic, as many as half a million UK public sector

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