Except for the Skeptical Speculator, I haven't seen much commentary on yesterday's third-quarter productivity and costs report from the Bureau of Labor Statistics. Skeptical indicates that this "is more evidence that the US economy remains strong," but the costs part of the report caught my eye. From Bloomberg:
Annual labor costs rose at the slowest pace in a year as businesses focused on efficiency with fuel prices above year-ago levels. Contained labor costs and the jump in productivity may reassure the Federal Reserve that inflation pressures are not accelerating, economists said.
Has the Bank of Canada spotted the trend?
UPDATE: Kevin Drum emphasizes the downside of this observation (hat tip, Brad DeLong).