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Is Amazonification real?

Summary:
There is a popular thesis, as recounted in this Forbes article last year, that e-commerce, robotics and AI are crushing consumer retail prices leading to an overall disinflationary environment. This in turn is changing the relationship between labour market slack and wages or inflation permanently.The phenomenon can be summed up as the “Amazonification” of the economy.But is this really what’s happening?In a report last week entitled Did Amazon Kill the Phillips Curve?, BCA Research challenged this assumption.Leaning on findings from US consultancy Bain & Company from December 2016, the ever-counterintuitive independent research shop noted e-commerce sales have been slowing.The slowdown in e-commerce hints at two dynamics usually overlooked by the market:Not everyone wants to buy

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There is a popular thesis,

Izabella Kaminska
Izabella Kaminska joined FT Alphaville in October 2008, which was, perhaps, the best time in the world to become a financial blogger. Before that she worked as a producer at CNBC, a natural gas reporter at Platts and an associate editor of BP’s internal magazine. She has also worked as a reporter on English language business papers in Poland and Azerbaijan and was a Reuters graduate trainee in 2004.

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