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Chart of The Week 3-8-2023

| March 08, 2023

Chart of the Week: All the Wage

Prices across US services categories may prevail as a key driver of future disinflation. However, strong wage growth remains a headwind. Specifically, wages account for almost 40% of end-consumer prices across services categories relative to just 25% across goods categories. In our view, this cost structure underscores the importance of further labor market softening to counterbalance recent inflation resurgence.