Goods prices are falling. Services prices are not. Policymakers are choosing to wait. Three of the world’s largest central banks left rates unchanged this week and used nearly identical language to describe why: the disinflation in goods is well established, while services inflation remains uncomfortably sticky. “The easy part is over,” said Priya Natarajan, chief economist at Meridian Capital. “Everything from here depends on wages, and wages move slowly.” Markets had priced in at least one cut before year-end. That expectation has now been pushed into the first quarter, and bond yields rose modestly on the news.Central banks signal a pause as inflation cools unevenly across the G7
