The Employment Cost Index, the broadest measure of labor costs, rose 1.0% last quarter after increasing 1.2% in the July-September period, the Labor Department said on Tuesday. Economists polled by Reuters had forecast the ECI rising 1.1%. Labor costs increased 5.1% on a year-on-year basis after advancing 5.0% in the third quarter. With the fourth-quarter release, the government introduced new employment weights based on the 2018 Standard Occupational Classification system. The ECI is widely viewed by policymakers and economists as one of the better measures of labor market slack and a predictor of core inflation, because it adjusts for composition and job-quality changes. The report was published as Fed officials were due to begin a two-day policy meeting. (Reporting By Lucia Mutikani; Editing by Andrew Heavens)
WASHINGTON, Jan 31 (Reuters) - U.S. labor costs
increased less than expected in the fourth quarter as wage
growth slowed, offering a boost to the Federal Reserve in its
fight against inflation.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.