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Consumer Price Index: Difference between revisions
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== Near-term inflation drivers == | == Near-term inflation drivers == | ||
Near-term inflation drivers are mostly in line with a continued decline in inflation in the coming months. | |||
=== 1. Wages === | === 1. Wages === | ||
The labor market is still | The labor market is still resilient, and wages are still above average, due to this we can still expect pressure to the upside in CPI in the coming months, especially in the service sector.<ref>https://tradingeconomics.com/united-states/wage-growth#:~:text=Wage%20Growth%20in%20the%20United,percent%20in%20March%20of%202009</ref> | ||
* However, the trend has been slowing recently, recent labor data shows average hourly earnings, year-over-year, rose by 4.6%, compared to 4.8% in November and below the 5% expected. It was the smallest annual growth in average hourly earnings since August 2021. <ref>https://tradingeconomics.com/united-states/average-hourly-earnings-yoy</ref> | * However, the trend has been slowing recently, recent labor data shows average hourly earnings, year-over-year, rose by 4.6%, compared to 4.8% in November and below the 5% expected. It was the smallest annual growth in average hourly earnings since August 2021. <ref>https://tradingeconomics.com/united-states/average-hourly-earnings-yoy</ref> | ||