The rise in the price of services excluding rents: The true indicator of wage inflation

We compare the rise in the price of services excluding rents in the United States, the United Kingdom and the euro zone. This is a reliable indicator of wage inflation, since it: Is not affected by movements in the price of energy or industrial raw materials like the price of manufactured goods; Does not depend on the scarcity of housing, like rents (actual or imputed to homeowners). In January 2024, the rise in the prices of services excluding rent is: 3.7% in the United States; 6% in the United Kingdom; 4% in the euro zone. This shows that “bottom-up” inflation is still high in all three countries.