PART 1 of Negotiations and Settlement Trends: Will This Week’s CPI Report Show Diminishing Inflation – and What Does It Mean for Pending Negotiations?

PART 1 of Negotiations and Settlement Trends: Will This Week’s CPI Report Show Diminishing Inflation – and What Does It Mean for Pending Negotiations?

By Jim Cline and Kate Kremer

We have been closely tracking and reporting on inflation trends. The recent “ups and downs” (in inflation has implications for the broader economy but it has some rather direct impacts on our contract negotiations. 

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Use of the OFM Population Numbers: Why Size Matters

By Jim Cline and Kate Kremer

In the past two newsletter issues, we reported on and discussed the annual OFM population numbers. As indicated, all the details of those numbers are posted on the Cline and Associates Premium Website. While the Cline and Associates Database tracks a wide range of demographic factors, Population remains the most important factor for the selection of negotiation “comparables.”

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Highlights from OFM Population Number Report

Highlights from OFM Population Number Report

By Jim Cline and Kate Kremer

In our last newsletter, we announced the release of the 2023 OFM Population Report. In this article, we discuss some of the highlights from the OFM data.

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Impact of June CPI Numbers on Contract Negotiations

Impact of June CPI Numbers on Contract Negotiations

By Jim Cline and Kate Kremer

In the last newsletter, we reported on the Bureau of Labor Statistics release of the June CPI numbers. As was noted, over the past 4 months the CPI has slid dramatically, although the Seattle numbers remain high by historic standards and substantially outpace the national CPI indices. The June CPI-W numbers are reflected in this graph:

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2023 Population Numbers Released by OFM

2023 Population Numbers Released by OFM

By Jim Cline and Kate Kremer

City and County April 1 annual population estimates are released the beginning of July by the Office of Financial Management Forecasting and Research Division

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Key June CPI Report: Significant Drop in CPI although Seattle Numbers Still Far Outpace the National Numbers

Key June CPI Report:  Significant Drop in CPI although Seattle Numbers Still Far Outpace the National Numbers

By Jim Cline and Kate Kremer

The Bureau of Labor Statistics released the June CPI Numbers on July 12. Both the Seattle and All Cities CPI numbers dropped significantly, although the Seatle numbers continue to notably outpace the national indices. This graph shows the relative numbers over the past 12 months and to date for the “W” index:

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CPI Trends and the Impact on Negotiations Results

CPI Trends and the Impact on Negotiations Results

By Jim Cline

In our past two newsletters, we’ve discussed the continuation of higher-than-expected inflation. Those articles identified the prediction by economists earlier this year for the mid-year 2023 national inflation to subside to 3.6% and our doubts that those predictions will materialize. We are now expecting the June CPI numbers to be closer to 5% nationally and higher for the Seattle indices.

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Continued Inflation Complicates Negotiations

Continued Inflation Complicates Negotiations

By Jim Cline

In our last newsletter we discussed the most recent CPI reports. It discussed the slowing but still high inflation numbers. This chart shows the 12-month trend line in the Seattle and All Cities CPI:

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CPI Continues to Ride High — But with Signs of Moderation

CPI Continues to Ride High — But with Signs of Moderation

By Jim Cline and Kate Kremer

The latest CPI report continued to show high inflation numbers, even higher than the previous set. But inside those numbers were signs that the predicted slowdown in inflation may lie ahead. The Seattle 12-month through April to April “W” index was reported at an eye-popping 8.1%. The All-Cities index was even higher at 8.6%:

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Cline and Associates January Webcast Covers the Latest on Inflation, Contract Negotiations, and Settlement Trends

Cline and Associates January Webcast Covers the Latest on Inflation, Contract Negotiations, and Settlement Trends

By Jim Cline and Kate Kremer

Wednesday we provided a fairly detailed live Webcast covering inflation, economic indicators, the latest in settlement trends, and where we see inflation and wage negotiations heading.  For Premium Website subscribers, the Video and Transcript are available here.

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