Inflation has picked up materially in recent months, with the core CPI rising 3.0% in April, the highest year-over-year rate in 25 years.
As measured by the Employment Cost Index (ECI), growth in wages and salaries among private-sector workers has also picked up. Further acceleration in wages and salaries, should it occur, could push rates of consumer price inflation even higher and keep the current burst of inflation from subsiding as the FOMC presently expects. READ MORE