About Those Cost Push Inflation Fears...

Via Real Time Economics at the WSJ:

No Sign Yet of Labor Cost Inflation in U.S. or U.K., by Paul Hannon: Despite falling unemployment rates, there are few signs that rising wages will soon start to push inflation higher in either the U.S. or the U.K., where central banks are expected to raise their benchmark rates next year and in early 2016 respectively.

In both countries, policy makers expect tightening labor markets to result in a pickup in wages that will translate into higher consumer prices, as businesses act to protect their profit margins...

But an internationally comparable measure of labor costs released Thursday by the Organization for Economic Cooperation and Development showed no sign of a buildup in inflationary pressures from that source in either country.

Indeed, the Paris-based research body recorded a 0.1% drop in unit labor costs in the U.S. during the third quarter, which followed a 0.6% decline in the second quarter. ...