Inflation's Unwelcome Guest: The Stagnant Wage Growth Problem The inflation conundrum has dominated economic discourse in recent months, but beneath the surface lies a more insidious issue: stagnant wage growth.
As the Bureau of Labor Statistics prepares to release its consumer price index for July, economists are bracing themselves for another instance where the rate of inflation eclipses wage gains.
The prospect of stagflation – high inflation coinciding with sluggish economic growth and rising unemployment – has become increasingly plausible.