The Atlanta Fed Wage growth tracker moved up to +6.4% in March versus 6.1% in February.. The tracker is a three month moving average of the median wage growth.
- For people who changed jobs, wage growth increased by 7.3% versus 6.7% previously
- For people not changing jobs the wage gains were 5.9% versus 5.8%
This report is not good news for future inflation . Yesterday CPI YoY fell from 6.0% to 5.0%. The PPI YoY moved from 4.9% to 2.7% this month after a fall of -0.5% for the month. That decline replaced a -1.4% gain a year ago contributed to the sharp fall.
Looking at the chart above, the wage growth pre-September 2021 was centered between 3% and 4% going back to 2015. The high monthly gain reached 6.7% in June and July 2022. The most recent low bottomed at 6.1%. Needless to say wages continue to be a problem for inflation going forward.
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