US productivity boom may explain how inflation slowed

(CNN)– A boom in U.S. productivity may explain how inflation slowed amid a strong economy.

Productivity is measured by dividing all the goods and services produced in the economy by every hour people worked.

If it’s strong then that means the economy is being more productive.

Data from the Labor Department shows that it increased 2.7% in the fourth quarter from a year earlier.

That is also above the average increase over the past two decades.