Inflation & Prices
US Labor Costs Trail Forecasts, Adding to Slower Inflation Signs
- Employment cost index rose 1% in final three months of 2022
- Moderation in compensation reflected services, government
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US employment costs rose at a slower-than-expected pace in the closing months of 2022, adding to signs of moderating inflation that reinforces the case for a smaller interest-rate increase by the Federal Reserve this week.
The employment cost index, a broad gauge of wages and benefits, increased 1% in the fourth quarter, according to Labor Department figures released Tuesday. Labor costs have risen at least 1% for six straight quarters, extending what was already a record streak in data back to 1996.