COVID-Impacted Sectors Recovery Outlook
Mid to High-Single-Digit Annualized Inflation
The annualized pace of growth across several key inflation measures,
including wage inflation, has remained elevated in the mid to high-single-digit
range, considerably in excess of the Federal Reserve's long-term target of 2%
% Month-over-Month and Annualized Change in Key Inflation Metrics:
Apr-21
May-21 Jun-21
Jul-21 Aug-21 Sep-21 Average
CPI
0.8%
0.6%
0.9%
0.5%
0.3%
0.4%
0.6%
Annualized
9.6%
7.2%
10.8%
6.0%
3.6%
4.8%
7.2%
Core CPI
0.9%
0.7%
0.9%
0.3%
0.1%
0.2%
0.5%
Annualized
10.8%
8.4%
10.8%
3.6%
1.2%
2.4%
6.4%
Core PCE
0.6%
0.6%
0.5%
0.3%
0.3%
N.A.
0.5%
Annualized
7.4%
6.8%
5.8%
3.8%
4.0%
N.A.
5.7%
Wage Inflation¹
0.7%
0.5%
0.4%
0.4%
0.4%
0.6%
0.5%
Annualized
8.4%
6.0%
4.8%
4.8%
4.8%
7.2%
6.2%
Source: Bureau of Labor Statistics
(1)
Represents the month over month change in the seasonally adjusted, average hourly earnings of all nonfarm payroll employees as published in the BLS' Employment Situation Report
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