US inflation has slowed markedly over the past year as the Federal Reserve raised interest rates aggressively to cool demand and slow price increases. The job market hasn’t cooled as much and there’s always speculation over what the latest monthly jobs report means for the Fed. The central bank will continue to pay close attention to the state of the labor market, specifically on wages, as it focuses on defeating inflation, but there’s only so much that labor data can reveal about price increases. Mainly, it’s that wage figures are great at gauging inflation’s progress, but they’re lousy at forecasting its future. ... (full story)