US inflation leaps to 2.5%, as UK real wage growth slides - business live
(The Guardian Greece)

Economists fear a renewed pay squeeze as average earnings in the UK drop, just as inflation picks upLatest: US inflation jumps to four-year highReal wages only growing at 1.4% in UKResolution: It´s going to get worse...Wages growth slows unexpectedlyUK JOBS REPORT: Unemployment down, jobs total up Small fall in EU workers in Britain 2.01pm GMT Here´s some instant reaction to the surge in the cost of living in America.The dollar is on a tear: -Best day in a month-5-week high-On its longest winning streak in 5 years (up for 11 days in a row) pic.twitter.com/b8opyoaFtBFed Chair Janet Yellen has indicated that interest rate rises are very much in her plans for the US economy in the year ahead, and today´s inflation data will only serve to underline her stance.Inflation sailed past the Fed´s two per cent target and with economic growth expected to tighten, Yellen may well intervene on multiple occasions in the coming months.Yellen did not provide an explicit timeline in relation to interest rate hike and she is not going to do that today as well. Her job in these events is to manage the market expectations for any future interest rate... However, the CPI data released today has increased more pressure on her and she will be quizzed more intensively.Having said that, we anticipate that the Fed will be able to fire another bullet during the next quarter (when it comes to the interest rate). Yes, sturdy growth and eroding slack in the jobs market are validating the Fed´s economic forecasts, but the wild card is still the Trump´s fiscal and tax plans. The Fed has removed the reference to transitory energy factors from their statement, and for us, it sends the signal that they are confident in achieving their mandate inflation target.Weakest point in US inflation data release: earnings. Real avg weekly earnings -0.4% in Jan vs. flat expected and +0.3% in Dec 1.41pm GMT Boom! Two pieces of US economic data have just hit the wires and moved the markets.The big news is that ...