Wages are slowing --- that’s critical to control inflation

(Emillie, “After ‘two years of exuberance,’ wage growth is slowing,” pg online @ https://www.hrdive.com/news/wage-growth-is-slowing/652378/ //um-ef)

As Bunker noted, however, that unprecedented growth may be coming to an end. While that news may be discouraging for job seekers, Bunker points out that slowing wage growth may be key to controlling inflation. Christopher Waller, a member of the Federal Reserve’s Board of Governors, talked about the connection between wage growth and inflation during a February speech at the Arkansas State University Agribusiness Conference. “For employers, the very strong labor market makes it hard to find and retain workers. One effect of this tightness is seen in wages and other compensation, which ultimately show up in the prices that consumers pay for goods and services,” Waller said. “For example, last year the Employment Cost Index, which tracks movements in labor costs, including both wages and benefits, increased over 5 percent, the highest rate since 1984. We want to see wages grow but at a pace that is consistent with our goal of stable prices.”