Margins Gain at U.S. Companies as Wages Lag - Bloomberg
Written on February 21, 2012
Companies are improving margins and generating profits as wage growth for the American worker lags behind the prices of goods and services.
The year-over-year change in the so-called core consumer price index, which excludes volatile food and fuel, has outpaced hourly earnings for the last four months. In January, average hourly earnings climbed 1.5 percent from a year earlier, while core inflation was up 2.3 percent.