The Turn Towards Tightening

Central banks set the tone this week. After Warsh's first Jackson Hole address, and with the ECB expected to move again, the monetary tide is turning towards tightening — even as growth slows. The week in six charts:

→ Forecasters expect higher rates in most major economies→ Shipping and supply-chain costs are rising again→ Price pressure is re-emerging at the factory gate→ US labour demand is shifting to where workers are scarcest.→ G10 core inflation is already near target.→ The real cost of capital has decisively turned.