Economics
‘Alarmingly Big’ U.S. Wages Gain Undermines Argument That Inflation Is Transitory
- Bevy of inflation data this week shows building pressures
- Employment cost index includes record gain in civilian wages
Commuters walk through Pennsylvania Station in New York, U.S.
Photographer: Amir Hamja/BloombergThis article is for subscribers only.
While the U.S. government’s first estimate of third-quarter growth garnered plenty of attention this week, there was another economic data point that raised quite a few eyebrows.
The third-quarter employment cost index report showed civilian wages leapt 1.5%, the largest advance in series data back to 2001, as companies across a swath of sectors resorted to higher pay against a backdrop of labor shortages.