Omicron is so yesterday

<p>Kia ora,</p><p>Welcome to Friday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news financial markets have virtually dismissed Omicron threats now.</p><p>But first, US <a href="https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/ui-claims/20212130.pdf" target="_blank"><strong>jobless claims spiked last week</strong></a> but in a seasonal pattern, and if you look past that they remain low, and lower than pre-pandemic. On that basis they are at a 50 year low. There are still less than 2 mln people on these benefits and the lower trend is still in place. Last week's levels were about what analysts were expecting.</p><p>The widely-watched USDA <a href="https://www.usda.gov/oce/commodity/wasde/wasde1221.pdf" target="_blank"><strong>WASDE report</strong></a> is now suggesting that the world wheat harvest will be better than previously indicated - and <a href="https://tradingeconomics.com/commodity/wheat" target="_blank"><strong>wheat price slipped</strong></a>. But despite upward revisions to global stocks this month, they are still at a 5-year low. The same report suggests the US will be importing more beef at higher prices, and that US dairy production is slipping and prices are rising.</p><p>The one part of consumer spending that has delivered lower prices consistently has been online shopping, which is one reason it has boomed recently. In the US now one dollar of every four is spent online. But for the first time since it has been tracked starting in 2014, <a href="https://news.adobe.com/news/news-details/2021/Adobe-Digital-Price-Index-Online-Inflation-Hits-Record-High/default.aspx" target="_blank"><strong>online prices are rising fast, up +3.5% in the past year</strong></a> and extending the rises to 18 straight months. The supply-chain pressures are building inflation everywhere now.</p><p>Worse, the expected easing of <a href="https://www.drewry.co