The persistent rise in commodity prices has not been accompanied by rising wages – No big increase in wages means No big increase in inflation.

A recent post by Mark Perry on his Carpe Diem blog did an excellent job pointing out an obvious and verifiable fact . . . You don’t have escalating inflation “unless and until” you have escalating wages.  Here is part of his commentary and an accompanying chart.

 “It would be historically unprecedented to start experiencing rising inflation in 2011 with stagnant wages, and unless and until we start seeing rising wages we might not see higher inflation this year”.

Sat April 16, 2011

Aberdeen Investment Management – a guide service for micro-cap technology investment

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