Furthermore, of particular importance among core inflation components were core services other than housing, which cover "a wide range of services from health care and education to haircuts and hospitality. . . . Because wages make up the largest cost in delivering these services, the labor market holds the key to understanding inflation in this category" in the United States.
The extent and the duration of the military encounter as well as the extent of the anthrax incidents will determine the level of confidence among consumers and businesses in the coming months. Part of the current uncertainty lies in the fact that indicators refer to the period before the watershed date 11 September.