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U.S. workers have reason to hope for slightly better pay raises this year, a shift that could add momentum to the economic recovery.
With corporate America sitting on large piles of cash and manufacturers seeing a surge in exports to fast-growing emerging markets, signs are mounting that some of the benefits will start trickling down to employees.
I doubt that with plenty of workers anxious to get jobs....
Oh, the ADMITTED inflation rate is about 4%...
That's NOT counting the costs of food and energy (Because no one uses those)
They are saying a 'raise' of 2.5- 3%.
So what they are claiming is a 'better raise' is at minimum (And actually worse if you eat or use energy) a decrease of 1% of your buying power compared to 2010.
Two measures of inflation are often reported:Core CPI, which does not include food and energy cost, and non-core CPI, which includes everything. Core CPI is important because this is what the Federal Reserve looks at to decide whether or not to raise the Fed Funds rate. The Fed uses the Core CPI because food and energy, specifically gasoline, are so volatile and the Fed's tools are so slow-acting. Therefore, inflation could be high if gas prices have increased dramatically, but the Fed won't react until those increases trickle through to the prices of other goods and services.
Yes and...inflation has not been 4% and CPI-U still includes food and energy. CPI-U is what is most often reported.
You need to brush up on your reading comprehension.
The Gov't calculates 'Inflation' based upon the calculation which does NOT include food and energy, as is clearly stated.
Quote:
Originally Posted by user_id
Its 95.5%, but so what? The FED targets positive inflation of around 2~3% over 100 years that will change the value of a dollar considerably.
Not at my company. Just last week we got told even though company had a good 4Q they were still holding back. There will be raises but not to expect anything "substantial".
Last year I got a 1.2% raise. Nothing to write home about. I didn't complain or whine...not my company - I'm not the CEO. I just didn't go out of my way anymore to put in more than my 40.
The CPI was, and I stress WAS, a measure of what it took to maintain a constant standard of living.
Who do you know that doesn't need food or energy ?
Prices go up and down too much for inclusion in the official CPI.
Well we don't have that luxury of not including them. If the price is up we pay. If the price is down we pay. And currently food/energy is taking a bigger chunk of everyone's paycheck.
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