Do wages drive prices, or vice versa? The answer matters for interest rates | Curio
News and insights read out for you.
10,000+ audio articles. 50+ world-leading publications.

All in 1 subscription.

The Wall Street Journal logo

Do wages drive prices, or vice versa? The answer matters for interest rates

7 mins | Sep 17, 2022
story image
Accelerating pay hasn't fuelled inflation in the past. Federal Reserve officials are worried that high pay growth could prompt a wage-price spiral as businesses try to offset soaring labour costs. Tom Fairless examines the historical data to argue that increases in labour costs rarely reflect in goods prices.
Get unlimited access free for 7 days, then $6.67/month (billed annually)
Get started