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On wage-price spiral: Majority Leader Joel Villanueva, during Tuesday’s plenary session, February 13, 2024, allays fears of possible negative impact on the economy of the proposed P100/day wage increase of workers in the private sector . While the increase in wages of workers would also increase their buying capacity, Villanueva said it would indeed result in wage-price spiral. The senator defined wage-price spiral as an episode where three out of four consecutive quarters saw accelerating consumer prices and rising nominal wages. Citing an International Monetary Fund 2022 working paper, Villanueva said the study found out that: 1) of the 79 episodes identified with accelerating prices and wages, only a minority saw further acceleration after eight quarters or about two years; 2) inflation and nominal wage growth tended to stabilize, leaving real wage growth broadly unchanged; and 3) nominal wage growth normally stabilizes at levels that are consistent with observed inflation and labor market tightness. The study concluded, the majority leader added, that “an acceleration of nominal wages should not necessarily be seen as a sign that a wage-price spiral is taking hold.” (Bibo Nueva España/Senate PRIB)