Do Rising Labor Costs Trigger Higher Inflation?

6 Pages Posted: 11 Jul 2007

See all articles by David Brauer

David Brauer

affiliation not provided to SSRN

Date Written: September 1997


The evidence that developments in compensation growth lead overall CPI inflation has thus far been inconclusive. This study, however, sheds new light on the relationship between labor costs and price inflation. By breaking down compensation and prices into their various components, the author finds that compensation growth in the service-producing segment of the private sector can help predict prices for a specific group of services.

Keywords: labor costs, price inflation, service sector

JEL Classification: J3, E3

Suggested Citation

Brauer, David, Do Rising Labor Costs Trigger Higher Inflation? (September 1997). Current Issues in Economics and Finance, Vol. 3, No. 11, September 1997, Available at SSRN: or

David Brauer (Contact Author)

affiliation not provided to SSRN ( email )

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