Thursday, August 14, 2008

Not a Good Combination

Inflation is up and worker earnings are down.

Consumer prices took another sharp jump last month with high energy prices fueling a 0.8% monthly increase — nearly double analysts' predictions — and chalked up a 12-month inflation rate of 5.6%, the highest since 1991, the Labor Department reported today.

...Joel Naroff of Naroff Economic Advisors said that other economic indicators released today were equally worrisome. The Labor Department also reported that workers' average weekly earnings declined by 0.8% in July and 3.1% over the last year, even after adjusted for inflation.
So everything is more expensive, but at least you're making less. These are the salad days.

Via Kevin Drum.

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