Unions are settling for less

Inflation has slowed dramatically in the past year, and in March the Consumer Price Index actually went down for the first time since 1965. Yet economists have warned that the fight against high prices will not be won until the so-called core or underlying, rate also starts coming down.

Core inflation, which is currently hovering at somewhere around 7% to 8% is generally defined as the rate at which increases in labor costs exceed gains in productivity. Last week the Bureau of Labor Statistics reported some heartening progress in the struggle to bring down core inflation. In a...

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