For the first time in two years, wage growth in the United States outpaced price growth – Kommersant

Estimated The Wall Street Journal (WSJ), which processed the statistics of the Department of Labor and the Federal Reserve, in the United States, wage growth for the first time in the last two years began to outstrip consumer price growth. In June, the average hourly wage in the private sector is reported to have increased by 4% compared to the same month last year, while the consumer price index rose by 3%. According to analysts interviewed by the WSJ, if this trend can be sustained, this will lead to an increase in consumer spending, which will stimulate the country’s economy and help avoid a recession.

According to the Conference Board, a non-profit research organization, in June, US consumer confidence grew to an all-time high since January 2022. This was largely due to a slowdown in price growth, including for fuel. However, a June Conference Board survey found that most Americans polled fear a recession could hit the country next year. According to the chief economist of the organization, Dana Peterson, the fears are largely based on the measures of the Fed, which, as part of a decisive fight against inflation, has already raised the base discount rate ten times in a row, which, according to respondents, could cause an economic slowdown.

Evgeniy Khvostik