That’s taking a toll on American workers, who are seeing their wage gains eaten away by higher prices for everything from food and gas to shelter.
Many companies, especially larger ones like Chipotle Mexican Grill Inc. and T.J. Maxx owner TJX Cos., are still successfully passing on higher labor and materials costs to their customers. That’s a trend that most Fed policy makersat their meeting earlier this month, according to minutes of the gathering released on Wednesday.
“The competition with larger companies is capping the ability of smaller firms to add to headcount,” said Nela Richardson, chief economist of Automatic Data Processing Inc., which provides payroll management and other services to companies.
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