On A US Wage-Price Spiral
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Both the employment cost index (ECI) and the PCE deflator beat expectations on Friday and came in on the strong side. The ECI accelerated to 5.1% y/y in Q2 from 4.5% y/y in Q1. The core PCE deflator, the Fed’s favored inflation gauge, rose from 4.7% to 4.8% y…
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