Inflation is on everyone’s mind, with price increases broadening and escalating while wage growth remains far behind. In fact, last month inflation hit 5.7 per cent, the fastest pace of year-over-year price escalation since August 1991. Meanwhile wage growth could accelerate due to labour shortages. We only have a quarter century’s worth of data tracking the relationship between inflation and wage growth, and it clearly shows the two don’t really follow each other. The 3.1 per cent growth in average hourly wages last month doesn’t tell if both bosses and the lowest-paid saw an equal increase.

Source: thestar March 24, 2022 10:16 UTC