World News: The Daily Money: Are we heading for a wage-price spiral?

ALL THE MONEY NEWS YOU NEED TO KNOW

Tuesday, October 25

Hello, Daily Money subscribers. It's Bailey Schulz, here to bring you today's top news.

Wages accelerated 5.1% annually in the second quarter. With inflation driving up prices for consumers, you would think this is good news, right?

Not so much.

The figure has experts concerned about a wage-price spiral, a problematic loop where workers demand higher wages to cope with higher prices, which then increases costs and pushes prices even higher.

That 5.1% figure is the fastest clip since the series began in the first quarter of 2002.

While the International Monetary Fund says the risks of a wage-price spiral are low, some economists believe the U.S. is already in a spiral or entering one.

Now is the time to plan holiday travel

It may be too late for Thanksgiving travel, but travelers still have time to find a deal for their winter getaway.

While hotel and airfare prices are up this winter, travel reporter Zach Wichter says there are steps you can take to trim travel costs. Some of the biggest takeaways from his reporting are to be flexible with travel days and book at least one month in advance for domestic flights.

And while no one likes waking up early to drag themselves to the airport, it may be worth the hassle. Expedia says flights that depart after 3 p.m. are 50% more likely to get canceled.

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🐕 Pet spotlight 🐕

Meet Joska, a black Labrador, a service animal and an experienced cruiser. Her owners take cruises so frequently that the 10-year-old dog has spent nearly 700 days at sea. Holland America Line is designating Joska as an honorary 5-Star Mariner this week, the line's highest membership tier.

Service dog Joska has spent about 700 days at sea.

Courtesy of Cornelis Marinussen

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About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: How decisions by the Federal Reserve, government and companies impact you.

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