One more reason for inflation to remain subdued while the economy forges ahead came in this week. It was the latest personal income report, which actually showed wages and salaries shrinking in December.

In fact, wages grew at just a 1.9 percent annual rate in the fourth quarter of last year.

This is certainly not a plus for the economy because our wages are the raw material needed for our spending.

But if you're an employer -- and/or an investor looking for juicy profits -- it's a bittersweet plus: One more sign that are enough unemployed and underemployed and just plain insecure people around that many workers are just satisfied to hold to their jobs let alone ask for a juicy wage hike.

Another interesting aspect of the personal income story is that wage growth was even weak in the services industry -- think office workers, professionals, retail clerks, etc.

Isn't this the part of the economy that's supposed to be immune from international competition which batters down factory wages?

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In large part, of course, services wages are more protected because it's tough to outsource a job that requires the worker to be physically located in a particular place, like a doctor or teacher.

But even services are not immune to the fact that there is a large pool of people available to work, eager to trade up to a better job if they can find one. Until the job market engine is humming, wages are likely to stay in low gear.  

Kathleen Hays anchors CNN Money Morning and The FlipSide, airing Monday to Friday on CNNfn. As part of CNN's Business News team, she is also a regular contributor to Lou Dobbs Tonight.