Labor Reports: Annual Inflation Rate 1.5%, Annual Rate of Wage Growth 3.5%…

The Bureau of Labor Statistics (BLS) released some important data today surrounding the state of the U.S. economy. The first release shows the current CPI (consumer price index) or rate of inflation:

(BLS Release) […] The all items index increased 1.5 percent for the 12 months ending February, a smaller increase than the 1.6-percent rise for the 12-months ending January. The index for all items less food and energy rose 2.1 percent over the last 12 months, a slightly smaller figure than the 2.2-percent increase for the period ending January. The food index rose 2.0 percent over the past year, its largest 12-month increase since the period ending April 2015. In contrast, the energy index declined 5.0 percent over the last 12 months. (read more)

As noted above, energy prices are 5.0% lower year-over-year; this is a significant reason for the current low inflationary rate.  Also energy prices (fuel, gas, oil) disproportionately impact the middle-class as an unavoidable cost.  Lower gas prices (currently down 9.1%) help middle-America, and also have a downstream impact of lowering product transportation costs.

An overall annual rate of inflation at 1.5 percent is exactly on target.  CTH has been predicting this energy-based outcome for more than three years:

The third highest variable cost of goods beyond raw materials first, labor second, is energy. If the U.S. energy sector is unleashed -and fully developed- the manufacturing price of any given product will allow for global trade competition even with higher U.S. wage prices. (link)

The second BLS release was a review of Real Earnings and Wages.

Here the news is terrific and the results on target:  Annual wage growth 3.5%

[Source Link, Table A-2]

Keep in mind the wages and prices are national averages.  There are regions and specific sectors of the workforce where the rate of wage growth is much higher. The average rate of wage growth is 3.5 percent; and wages are on an upward trend-line.  With an ever tightening labor market we can expect to see continued upward pressure on wages.

Wage growth of 3.5% with inflation at 1.5% means higher actual income, more money in the pockets of workers, and increased purchasing or saving power.

Lastly, CTH would be remiss if we did not point out we are deep into year #2 of the steel, aluminum and China tariffs.  The multinational doomsayers and financial pundits were predicting massive surges in U.S. consumer prices for the downstream products.

Wall Street’s proclaimed consequences are not happening.

Wilbur was right…

 

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This entry was posted in Canada, China, Decepticons, Dem Hypocrisy, Donald Trump, Economy, energy, European Union, media bias, NAFTA, President Trump, Trade Deal, Uncategorized, USMCA. Bookmark the permalink.

46 Responses to Labor Reports: Annual Inflation Rate 1.5%, Annual Rate of Wage Growth 3.5%…

  1. Dekester says:

    Stunning/ tragic that the MSM refuse to acknowledge the incredible impact that PDJT and his incredible team of economic advisors has had these past two years.

    The legal and patriotic voters know though.

    Go bless PDJT

    Liked by 15 people

  2. milktrader says:

    The Fed will reveal itself shortly

    Like

    • Perhaps after POTUS nails China with Sanctions sand Tariffs for their Cyber Attacks on our Navy.

      Liked by 2 people

    • Mandy says:

      Hubby did a review of Fed action and economic downturns, and he found that the Fed causes them. He looked at all of them back to 1929. Every one of them, including the big one in 1929 was preceded by a rate and money tightening campaign by the Fed. Sometimes, they raised rates and tightened until it crashed and THEN slammed down the rates and flooded the system with liquidity; other times, they see that they’ve gone too far early enough to start lowering rates before the crash. Sometimes that worked, sometimes it didn’t. Where we are now: they’ve raised for 2 years and slowed way down if not killed the economic expansion, and they saw that they’d done it and capitulated. Remains to be seen whether they capitulated early enough to prevent a crash, or not.

      Liked by 1 person

      • Dave Crawford says:

        I could be wrong but there is evidence to suggest both Lincoln and Kennedy were killed in part to implant central banking into our country which is wicked and malicious. The Fed is nothing more than a group of bankers who play with rates at their whim. I harbor no illusions they have our best interests (or Trumps) at heart.

        Liked by 1 person

        • Mandy says:

          You are correct: the Federal Reserve does NOT have our best interests at heart. It is evil. It is … THE CREATURE FROM JEKYLL ISLAND.

          “Give me control of a nation’s money and I care not who makes the laws.” – Mayer Amschel Rothschild

          I believe that their reign of terror is coming to an end soon, because I believe the rest of the world knows that the US is the key to their financial domination and the key to destroying the ‘nest of vipers’ is to destroy US dollar hegemony. Won’t be pretty for us…we’re gonna need every bit of manufacturing that POTUS can bring home.

          Liked by 2 people

          • clairbee says:

            He who holds control of the dollar holds the users of that dollar hostage.

            Like

          • Harry says:

            The FED isn’t going anywhere as even the President of the United States who made a campaign promise to audit the FED has run away from that idea,… they aren’t going anywhere and they know it.

            Like

            • lokiscout says:

              I am sure you are right do you have a reference where President Trump promised to audit the FED? I have been looking for proof and it’s worth a beer to me if I can find it! 😉

              Like

      • And what was the Fed’s “act of contrition?

        Powell’s announcement that President Trump couldn’t fire him.

        Chairman Powell is now irrefutably the SKUNK at the PARTY.

        Liked by 1 person

      • Dutchman says:

        Like a 16 y.o., learning to drive, gas/break, car lurching and stopping, and every so often dieing (1929, 2008).

        They should either LEARN how to drive, or (preferably) quit trying!

        Liked by 1 person

    • Robert Smith says:

      Powell wants to personally test the unemployment market.

      Like

    • If and when the Fed wants to help on the inflation front, they can simply CUT the INTEREST RATE INFLATION that they’ve driven up THEMSELVES:
      • Lower the Fed Funds Rate
      • Stop the Quantitative Tightening

      Implications:
      • Cuts the interest payments on Debt so we can use them to PAY DOWN the Debt that they complain about.
      • Makes growth in Housing and Auto sales affordable.
      • Neuters the China and EU Currency Devaluations inhibiting USA Exports.
      • Makes Business Financing more affordable to accelerate our Manufacturing and Small Business Renaissance.

      Duh.

      Liked by 1 person

    • California Joe says:

      It’s hard for the Fed to justify raising rates with oil prices and inflation remaining so low! Not that they wouldn’t try but it would attract the wrath of the big boys on Wall Street like Goldman Sachs and Merrill Lynch

      Like

    • GGHD says:

      milktrader, … Yes, ‘The Fed will reveal itself shortly.’
      TheConservativeTreehouse has a number of articles, about, how the Federal Reserve [The big Multinational Banks] are directly linked to the Big Wall Street companies. (The Chamber of Commerce crowd).]
      This group of business people have bet their money, on manufactured goods from overseas, in the factories placed there by the Chamber of Commerce/Wall Street crowd. = This brings them into direct conflict with the Trump MAGA plan.

      According to TheConservativeTreehouse writers, Trump is developing a more vibrant ‘main street’ banking system, using ‘local community banks and credit unions’ to help the main street economy. …. This also exacerbates the conflict with the big multinational banks.

      Trump has some very intelligent people helping with his MAGA plan.
      I’ll admit, the planning and execution of the MAGA plan is way beyond, my intellectual capabilities. … As it’s often said on TheConservativeTreehouse, ‘~Trillions are at stake.’ …
      … We live in a historical time period. All we can do is pray for a good result for the USA, and for Trump and his team, too. [And be ever ready to vote in favor of the MAGA plan.]

      Like

  3. citizen817 says:

    Promises made, Promises kept!

    From June 29, 2017

    Liked by 2 people

  4. fred5678 says:

    Wolverine soup for dinner!!!!

    I remember Wilbur patiently trying to explain how little affect the steel tariff will have on typical consumer to Never-Trumper and Prog anchors. They coiuld not comprehend or refused to believe facts and simple math.

    SD, you pick the best images!!!!! Says it all!!

    Liked by 6 people

  5. sickconservative says:

    So how will the socialist spln this while encouraging illegals too really prevent their pay raise.

    Like

  6. GSparrow says:

    I remember a time when creating good paying jobs, stimulating economic growth and increasing employment and prosperity would guarantee an election win.

    The gov’ts of today are far more involved in micro managing people’s lives and expected to be by the left that even positive national economic news is just another fleeting sound bite-at most. Only a few informative sites like CTH still focus on the larger more important issues that determine a nation’s successes and failures.

    Liked by 2 people

  7. GB Bari says:

    The seismic shift in the economic paradigm that occurred pre-PDJT among the financial media is breathtaking to reflect upon, now that PDJT is working hard to reverse it. I admittedly did not fully realize what had taken place.

    The movie “The Matrix” has taken on a new significance with me, and others. Life imitates art or vice versa?

    Like

  8. Fools Gold says:

    Simple math, if it cost less fuel to move products from the point of orgin to the store shelf’s there is a cost savings in energy which is suppose to “trickle down”. It’s not rocket science. If you ask me diesel prices should be lower than gasoline right now. When engineers come up with a battery (or widget) that works cheaper than oil to deliver all products to the shelf’s I’ll listen….

    Like

    • Fools Gold says:

      Anybody remember the fuel prices before and after Carter tried to solve the Palestine/Israeli conflict? I do, I think it was back when we depended on Saudi oil to run our economy. 🤔

      Like

  9. Robster says:

    From last months PPI, prices for construction machinery and equipment rose 1.7 percent (steel tariffs)? Meanwhile, food prices steadily increasing won’t be offset by low oil prices forever. When the Fed rescues the stock market (again) with lower interest rates and/or QE, dollar drops and oil prices will go up. At that point, inflation won’t have anywhere to hide.

    Like

  10. Lower oil prices also helps with energy needed for industrial production, and for some products which are manufactured with chemicals based don oil and derivative feedstocks. The energy boom and revelation that we have significantly higher reserves than we thought, even 10 years ago, gives this economic cycle longer “legs”.

    Recent articles in WSJ indicate that Powell and the Fed are not planning new rate increases in near term, probably not even this year. The rest of the world weak GDP growth contains other potential inflation pressure.

    Like

  11. Harvey Lipschitz says:

    Lower energy costs means lower fuel and fertilizer costs for farmers and cheaper chicken.

    Like

  12. Wonder if AOCcomes out tomorrow and says the only reason wage growth has doubled is because people are working two jobs? That’s two more than she works!

    Liked by 1 person

  13. Ghost says:

    Observations from a smaller limb.

    One of the more enjoyable things I have found since finding my branch is reading previously written posts from Sundance. I follow the links of them posted on every new article written that I can. They are incredible in both there explanatory and projection capabilities. I slowly swing in awe in my little hammock.

    Liked by 1 person

  14. spinoneone says:

    Let’s cross our fingers and hope this continues deep into 2020.

    Like

  15. AdamSelene says:

    Why did food go up, though? I would figure decreased energy costs would lead to decrease food costs. Or will the food index lag behind the energy index?

    Like

  16. Rick_Masters says:

    BREAKING NEWS on ABCCBSFOXMSNDCNBCNPR:

    “Labor Reports: Annual Inflation Rate 1.5%, Annual Rate of Wage Growth 3.5%.”
    BUT let’s get back to RUSSIAN COLLUSION. *smdh*

    Like

  17. labrat says:

    Here in the great state of Maine that traded in Trump lite (LePage) for AOC wannabe (Mills) my electric bill went up 25%. UGH So much for my first time in 5 years raise (3%)

    Like

  18. Patriotalways says:

    THE CPI IS ALSO BS — ANYONE WHO GOES SHOPPING FOR FOOD AND OTHER MOST ESSENTIALS KNOW THIS. THE CORRUPT WALL STREET/GOV LIARS HAVE BEEN MANIPULATING THE CPI FORMULA FOR YEARS — IF STEAK RISES TOO MUCH THEY SUBSTITUTE HAMBURGER, , ETC.

    MY GUESS IS THAT THEY WEIGHT ITEMS THAT DEPRECIATE RAPIDLY LIKE LARGE SCREEN TVs THAT WE RARELY BUY, AND DO NOT ACCOUNT FOR PACKAGED FOOD, PAPER TOWELS “SHRINKAGE” ETC.

    CAN THE TREEHOUSE OBTAIN THIS FAKE FORMULA SO WE CAN ANALYZE IT AND COMPARE IT TO SAY 30 YEARS AGO WHEN THEY USED THE SUPERMARKET BASKET?

    Like

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