CPI

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One argument that the labor market is to blame for high inflation has been the significant rise in unit labor costs during the post-pandemic recovery. The most recent example comes from the ECB:

Summary: The risks for May (CPI) are still tangibly to the upside, but developments from April CPI do shade favorably relative to what was the baseline headed into the April CPI preview.

What’s Happening: Despite signs of a “bloodbath” in the spot market for trucking, investment in the production of new trucks is set up to hold steady even as shipping rates fall. This could be good news for the inflation, investment, and climate outlooks. Why It Matters: In recessions, trucking