Wages Moving Up

To get true inflation you need wages increasing. That is finally starting to happen.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aX0SycQh8ObM&refer=home

Compensation for each hour worked increased at an annual rate of 4.6 percent, from a 3.4 percent rate the prior quarter.

For all of 2007, productivity rose 1.8 percent after a 1 percent increase the previous year. Labor costs rose 3.1 percent. Labor expenses account for two-thirds of the cost of producing a good or service