Oct 27, 2023

Why services inflation is so darn sticky

Mario Tama/Getty Images

While demand for bigger purchases is cooling, people are still spending lots on cheaper, everyday services — like a haircut or dining out.

Segments From this episode

October can be a spooky month for stocks

by Nova Safo

Roughly half of S&P companies have reported earnings. It’s been generally good news about the past quarter but uncertainty about the path ahead.

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Why services inflation is stickier than goods inflation

by Justin Ho

Oct 27, 2023

Goods inflation has slowed down a lot over the last year, thanks in part to higher interest rates. But the Federal Reserve is having a harder time slowing services inflation.

Services inflation has stayed high because those prices, like for a haircut, are heavily influenced by wages.

Brandon Bell/Getty Images

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Hotel workers on strike in Los Angeles

by David Brancaccio and Erika Soderstrom

Earlier this week, thousands of unionized hotel workers assembled in downtown Los Angeles to protest their wages and working arrangements. We take you to the scene of the strike.

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The team

David Brancaccio Host

Leanna Byrne Host, BBC

Kelly Silvera Executive Producer

Meredith Garretson Morbey Senior Producer

Erika Soderstrom Producer

Alex Schroeder Producer

Ariana Rosas Producer

Dylan Miettinen Digital Producer

Jesson Duller Media Producer

Nick Esposito Media Producer

Nic Perez Director/Producer

James Graham Producer, BBC

Jo Critcher Producer, BBC

Naomi Rainey Producer, BBC

Lis Mahy Producer, BBC

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