BIS central bankers’ speeches  3  Graph 4  The third set of relative prices that I would like to talk about are those that relate to the price of labour. For workers, what matters is the wage that is received relative to the price of the goods and services that they purchase – the so-called real consumption wage.
For firms, what matters is the wage they pay, relative to the price of the goods and services that they sell – the so-called real product wage. Normally, at least at the aggregate level, these two are pretty similar, since there is a close correspondence between the goods and services that people buy and the goods and services that firms produce.