Josh 5
Since pandemic shock, labor costs make historically small contribution to price growth, while profits make historically large contribution: Contribution of cost components to price increases in the non-financial corporate sector
| Unit labor costs | Nonlabor inputs | Profits | |
|---|---|---|---|
| Historical average | 61.8% | 26.9% | 11.3% |
| Since 2020Q2 (recession’s trough) | 19.1% | 42.6% | 38.2% |
| Since 2020Q4 (approx. beginning of inflation) | 40.0% | 38.3% | 22.5% |
Source: Data from Table 1.15 from the BEA NIPAs.