Wage growth ‘has not impacted US inflation’, says Boston Fed

Study finds pay still has some way to go before reaching a level that would affect consumer prices


Wage growth has not been a significant factor in inflation in the US, according to research from the Federal Reserve Bank of Boston. 

It states that wages “are still catching up to the inflation shocks that followed the onset of the pandemic”. It adds that this leaves room for wage growth to exceed inflation without creating additional price pressures. 

The paper by Philippe Andrade, Falk Bräuning, José Fillat and Gustavo Joaquim was published on January 16. The authors claim wage growth is not

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