XBSIndex“In the US, on a year-over-year basis during the first quarter, productivity was up ~3%.”
What they posted
As we learned in the 80s and 90s, productivity is a powerful force against inflation. In the US, on a year-over-year basis during the first quarter, productivity was up ~3% while compensation per hour was up 3.5%. Thus, “underlying inflation”was 0.5%. No cost-push inflation
Why it's Truth
BLS primary data and multiple analyses confirm nonfarm business productivity growth of 2.8% (revised) or 2.9% (preliminary) y/y in Q1 2026, closely matching the claim of '~3%'; hourly compensation data align with the post's context of limited cost-push inflation.