The labor market will set inflation on a 'rollercoaster' that will weigh on stocks and the economy, BlackRock says

• The labor market is about to put inflation on a "rollercoaster," according to BlackRock strategists.
• That's because rising wages can stoke inflation, which raises the risk of rebounding prices.
• "We believe this structural labor shock is poised to take over as the driver of inflation as the pandemic-driven spending mismatch unwinds."

The labor market is bound to set inflation on a "rollercoaster," which will weigh on stocks and the economy, according to BlackRock.

The world's largest asset manager rang the alarm on a structural shift in the labor market, with the pandemic job recovery masking weak growth over the past few years.