◀ The Principal Blog

New Research on the Relationship between Wages and Inflation: Looking at Other Indicators



During the 1970s, economic research focused on the problem of the day — high inflation. And, wages were increasing at the same time as inflation. Economic theory had a nice explanation for this relationship – higher wages were passed through to consumers via higher prices. As inflation picked…

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Battle of the Dueling Price Indexes



In this blog post, I would like to discuss the widening gap between core Consumer Price Index (CPI) and Personal Consumer Expenditure (PCE) inflation. In April, the core (ex-food and energy) CPI increased at the fastest monthly pace since August 2011, 0.3%. Year over year, core CPI inflation…

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