RBA Board Member Rules Out Risk of Wage-Price Spiral — Market Talk

After all the hawkish warnings from senior RBA staff over the past month, it was a member of the RBA's policy-setting board, and labor-market economist, Iain Ross, who offered a few calming words about inflation. In a speech on the job market in Melbourne, Ross said there is "no evidence" of an emerging wage-price spiral in the economy despite elevated inflation. He said wage setting is much different today than in the 1970s, when inflation saw pay packets jump. Ross stuck to the themes of the RBA's last statement on monetary policy, saying inflation will return to target gradually. (james.glynn@wsj.com; @JamesGlynnWSJ)