United States employment expenses is stronger in second quarter. It is claimed that the workers supply is limited but the fact is people had to pay more than they can make. Business owners had to increase salary to keep continue their company. Whatever is happening in real life but it makes the strongest year of labor inflation in two decades. The inflation has too high ratio that it has reached 40 years record.
In january covid-19 cases rose again in a critical level and the numbers are decreasing slowly, experts are implying it as a big reason why inflation is high. Also consumer spending adjusted for changes in prices fell last month by the most since February.
On the other hand, overall growth accelerated by more than economists forecast in the fourth quarter, backed by the rebuilding of inventories.
A 1.9% gain in real final sales to domestic purchasers, a measure of underlying demand that take out the trade and inventories components of gross domestic product, was just slightly ahead of the 1.3% rate seen in the third quarter.