Private payroll employment has risen a little more than 200,000 per month, on average, since the end of last year, and although last month’s increase of 117,000 was disappointing, there is little indication that the labor market’s progress is stalling.
Similarly, demand for wages will go up, at least to maintain real living standards. What is critical for the MPC is to avoid this spiral, where prices go higher and higher just because everyone believes, for example, that the rand will be worth less and less in future.