Atlanta Fed wage growth tracker
The Atlanta Fed wage growth tracker has fallen to 5% from 5.2% last month. The growth rate is at its lowest level since December 2021 when it reached 4.5%.
Looking at the chart above, the pre-pandemic inflation surge hig was near 4% with the range for lower inflation between 3% and 4%. With levels at 5% we are still 100 basis points away from the high of that area.
Some Fed officials recently have said that wages remain too high for inflation to fall to 2%. This wage growth tracker is proof positive with that view. There is work to do.