There is a positive correlation between payroll employment and inflation, meaning that an increase in payroll employment can lead to an increase in inflation. In order to address inflationary pressures, policymakers may consider reducing payroll employment. Currently, the rate of payroll employment is declining, which is expected to have a dampening effect on inflation in the future. However, it is worth noting that the relationship between payroll employment and inflation is complex and multifaceted, and there are numerous other factors that can also influence inflationary pressures. As such, a comprehensive approach that considers multiple factors may be necessary to effectively manage inflation in the long term.
% CPI = 1.21 + 0.15 % Payroll Employment
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