Thread by @paulkrugman

Indeed. Monthly numbers are volatile; smoothed wage growth is only a bit above pre pandemic level 1/

https://twitter.com/mtkonczal/status/1588511378100596737

If you were worried that we needed much lower wage growth to make up for declining productivity, yesterday's report suggests that the decline earlier this year wasn't a sustained trend; probably a temporary effect of high churn 2/

Here's the picture. My guess is that we'll soon see productivity growth, though not necessarily level, return to historical norms 3/

Given what's happening to wages and productivity, I don't see any way to make the case, as some have, for underlying inflation of 6 or even 7 percent. This looks <4, possibly even as low as 3 4/