The official CPI measure of inflation picked up in March to +0.5% on the previous year.
The US Federal Reserve are meeting today and tomorrow to discuss monetary policy, and whether they will raise the Federal Funds Target Rate which has been at 0%-0.25% since 2009.
The labour market statistics released this morning showed regular average earnings (excluding bonuses) growing by 2.8% in the second quarter of the year (compared to Q2 2014).
For the first time since they started recording the CPI measure of inflation, the rate of price growth has fallen to 0% (for February).
In contrast to the UK recovery (covered by last week’s chart), the US economy has been looking very positive for a while now.
After last week’s chart on wages compared to inflation, we received plenty of correspondence asking whether CPI is the best measure for the cost of living.