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#1 02/07/2021 08:42:16

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Worried about inflation? Check paystubs, not just pump price

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Everyone would like to get paid more, but the worry on Wall Street is there could be too much of a good thing.

Wages are going up for workers across many industries as the economy roars out of the recession. And in terms of inflation, which is the สล็อต เติม True Wallet bogeyman for investors right now, a big and sustained gain in wages would be even more dangerous than the price spikes already seen for oil and other commodities.

When wages go up, they tend to stay there, unlike the up-and-down vagaries of commodities. Lumber prices have already more than halved, for example, after nearly doubling in the first four-plus months of the year. Few workers would willingly give up all or half of their raises.

That's why the upcoming monthly report on the job market, due Friday, could be an even bigger deal for markets than it usually is. Besides showing how many people employers hired, it will also detail how much wages are rising for workers across the country.

Economists expect the report to show a 0.4% rise in average hourly earnings in June from a month before. If they're correct, it would be the first time growth has been that high for three straight months, at least since such records began a little more than 15 years ago.

For now, many investors aren't that worried. They see wage growth moderating eventually, which would keep a cap on inflation. More people are getting vaccinated, benefits for unemployed workers are getting less generous and reopening schools in the fall will allow parents to return to work. All that should mean employers get more applicants to choose from, easing the pressure to raise pay to fill openings.

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