Another possibility is that it is a reflection of the subdued growth in the global production of goods and the relatively strong growth in services, where output is more difficult to measure. Whatever the reason, the dynamics of labour markets are critical to the future path of inflation.
It is possible that wage outcomes will remain very subdued even in countries with strong labour markets. If this turns out to be the case, then it is likely that inflation rates will also continue to be very low and monetary policy very accommodative.