Inflation remained in check last month, the Bureau of Labor Statistics just reported, as consumer prices rose just 0.1% from November. For the year, prices rose 2.7%.
But BLS also just reported that:
Real average hourly earnings did not change from November to December. ... Since reaching a recent high point in December 2008, real average weekly earnings have fallen by 1.6%.
So, prices didn't rise very much last year — but wages declined. Not a good combination.
Planet Money follows the economy here.