Oil Prices Drive Inflation Above Wages: A Blip, Not A Trend
Key takeaways
- Leadership Strategies Oil Prices Drive Inflation Above Wages: A Blip, Not A Trend By Bill Conerly,
- Forbes contributors publish independent expert analyses and insights.
- The long run trend is that employee compensation rises faster than inflation, but with exceptions.
Leadership Strategies Oil Prices Drive Inflation Above Wages: A Blip, Not A Trend By Bill Conerly,
Forbes contributors publish independent expert analyses and insights. Bill Conerly connect the dots between the economy ... and business!Follow Author May 13, 2026, 07:30am EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Man pumping gasoline, checking prices.getty. The increase in consumer prices exceeded wage growth over the past 12 months, with near panic from some reporters. The numbers show wages rose 3.6% but consumer prices increased by 3.8%. This disparity is a short-run blip, not a long-lasting trend.
The long run trend is that employee compensation rises faster than inflation, but with exceptions. The recent run-up of inflation came mostly from energy, where prices rose by 18% in the past 12 months. The rest of the Consumer Price Index rose just 2.8%.