Yesterday’s report from the Bureau of Labor Statistics (BLS) showed that wage and salary costs in the private sector rose 1.6% for the three months ended in September. That’s 6.55% annualized, the highest in at least 15 years- see below. When benefits are included, total compensation costs rose by 1.4% or 5.70% annualized.
But hey… let’s all keep chanting the Powell mantra: “inflation is transitory”. I hear that burning incense may also help.