Chart 1-16. Consumer prices usually increase more slowly
than private employers' compensation costs
Percent change from previous year
12
10
8
Employment Cost Index
6
4
2
Consumer Price Index
0
1980 1982
1984 1986 1988
1990 1992 1994 1996
1998 2000 2002
2004
NOTE: The Employment Cost Index is for private-sector workers. The Consumer Price Index is the CPI-U-RS research series.
SOURCE: Bureau of Labor Statistics
Chart 1-16. Consumer prices usually increase more slowly
than private employers' compensation costs
• The Employment Cost Index (ECI) measures the costs to employers of both
employee wages and benefits, and the Consumer Price Index (CPI) measures
the average change in prices paid by consumers for a variety of goods and
services.
• Changes in the ECI and the CPI have tracked fairly closely over time, though
increases in the CPI tend to be smaller than those for the ECI.
• In 2005, however, increases in consumer prices exceeded growth in private
employers' compensation costs.
16