Inflation in 2006 eased to the slowest pace in three years. In further good news, inflation-adjusted wages rose at the fastest clip in a decade. The Labor Dept. reported that the consumer price index climbed 2.5% last year, the best showing since 2003 and nearly a full percentage point lower than the 3.4% jump in 2005. The encouraging news stemmed from a sizeable slowdown in energy costs in the second half of last year. The slowdown in prices occured as workers wages began to show bigger gains. The combination of lower inflation and faster wage growth translated into an increase in inflation-adjusted weekly wages of 2.1% for the 80% of the workforce in non supervisory positions. Over the past 20years consumer price index has grown by 85% and average wage index has grown by 121%. This means a 36% increase in real wages over that period of time.