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How Much Do Labor Costs Drive Inflation?

www.frbsf.org How Much Do Labor Costs Drive Inflation?

Tight labor markets have raised concerns about the role of labor costs in persistently high inflation readings. Policymakers are paying particular attention to nonhousing services inflation, which is considered most closely linked to wages. Analysis shows that higher labor costs are passed along to ...

How Much Do Labor Costs Drive Inflation?

Spoiler: Not very much at all

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