Wages climbed 5%, a still-rapid pace as Fed awaits slowdown

Re:Wages climbed 5%, a still-rapid pace as Fed awaits slowdown by Bostonian on Sunday July 10, 2022 @12:26PM (#32046112)

With inflation above 8%, that means real wages have fallen at a 3% rate.

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Re:Wages climbed 5%, a still-rapid pace as Fed awaits slowdown by nabla9 on Sunday July 10, 2022 @12:47PM (#32046327)

Fed's concern is only the part of inflation that

1) it can change, and

2) is self sustaining.

Only that part of inflation that goes trough wages is self sustaining for a long term. If wages don't increase, demand decreases when people can't afford to pay.

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Re:Wages climbed 5%, a still-rapid pace as Fed awaits slowdown by cute_boi on Sunday July 10, 2022 @02:47PM (#32047617)

Sometimes demand doesn't decrease, but is replaced by low quality items. This applies to basic needs like food, hygiene etc...

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Re:Wages climbed 5%, a still-rapid pace as Fed awaits slowdown by nabla9 on Sunday July 10, 2022 @05:38PM (#32049332)

All that is needed is monetary value of items to decrease.

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Re:Wages climbed 5%, a still-rapid pace as Fed awaits slowdown by refurb on Sunday July 10, 2022 @02:05PM (#32047178)

8% is the monthly inflation (0.7%) annualized. We haven’t even had a full year of really high inflation.

I believe if you calculate it, inflation has been ~6%/yr over the last 2 years.

So a 5% rise in wages is almost keeping up with inflation this year.

Someone can check my math using the CPI-U numbers.

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Re:Wages climbed 5%, a still-rapid pace as Fed awaits slowdown by reducesuffering on Sunday July 10, 2022 @08:25PM (#32050755)

Like, the other commenter said, it's YoY, and a subtle mistake to think you can compartmentalize it to monthly is YoY / 12. Often what can happen is a sudden spike, like 8% inflation, where every month for the next year would turn out as 8% even though the month-to-month is flat every month except for the one sudden 8% jump.

Monthly = YoY / 12 iff inflation is linear and steady. (it almost never is)

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Re:Wages climbed 5%, a still-rapid pace as Fed awaits slowdown by peyton on Sunday July 10, 2022 @03:05PM (#32047826)

Above 8% is YoY. Last release was May 22 at 1% MoM adjusted, which is 12.6% annualized.

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Re:Wages climbed 5%, a still-rapid pace as Fed awaits slowdown by refurb on Sunday July 10, 2022 @08:44PM (#32050880)

CPI-U June 2020: 257.2

CPI-U May 2021: 268.6

CPI-U May 2022: 291.4

2020 to 2021 was 4.4%, 2021 to 2022 was 8.4%.

https://fred.stlouisfed.org/series/CPIAUCSL

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