From Slate MoneyBox:
You often hear members of the central banking establishment allude to the "hard won" battle against inflation in the early 1980s. But the battle was in fact won very quickly and decisively. And not coincidentally, since the victory the labor share has tended to steadily decline as seen above.
Answer: There is something other than labor cost that is pushing prices up.
What's that? There was no inflation for the past 30 years, you say?
Oh right, right, right.
Well, the good thing is that from facts in evidence -- specifically, the declining labor share -- it is clear that labor is not to blame for inflation.
I push this thought back to the 1970s when inflation was raging and wages did better at keeping up with it. In those days, wages were keeping up or, at least, not falling so far behind. But they were not then either the driving force behind inflation.
Oh, wages were blamed for inflation, sure. But that's not the same thing.
What is the same is the "something else" -- other than wages -- that led to increasing wage demands during the Great Inflation and remains the cause of inflation today, when wages are clearly not the driving force.
The "something else" is cost. Specifically? The cost of finance.
Related post: "One for You, Three for Me"