gas prices are down.

While wage growth only rose a disappointing 2.5%, when you account for the rate of inflation you get an entirely different--possibly positive--picture of the economy. Wall Street Journal staffer Josh Zumbrun takes a look at the effect inflation had on wages in previous decades as well as today:

Today is a more extreme test of that divergence from the 1990s. Inflation is even lower, most visibly due to the surprising persistence of low oil prices, but also due to the strong dollar, which is helping make import prices cheaper. Yes, people’s paychecks are growing slowly, but their inflation-adjusted paychecks have been growing at a clip that may even be considered healthy.

For more information on the connection between inflation and wage-growth, head over to the Wall Street Journal:

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