US Labor-Cost Gauge Cools in Sign of Easing Inflation Pressures
- Employment cost index increases at slowest pace since 2021
- Softer wage growth, tempered hiring corroborate rate-cut bets
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A broad gauge of US labor costs cooled by more than forecast in a fresh sign of easing inflation pressures that give Federal Reserve officials room to cut interest rates this year.
The employment cost index, which measures wages and benefits, increased 0.9% in the fourth quarter, the smallest advance since 2021, after rising 1.1% in the prior three-month period, according to Bureau of Labor Statistics figures released Wednesday.