US Labor Costs Rise Less Than Forecast as Inflation Eases

  • Employment cost index increased 0.9% in second quarter
  • Wages and salaries rose during period by least in three years
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A broad gauge of US labor cost growth closely watched by the Federal Reserve cooled in the second quarter by more than forecast, supporting a trend of gradually easing inflationary pressures.

The employment cost index, which measures wages and benefits, increased 0.9% in the April-to-June period, after rising by the most in a year at the start of 2024, according to Bureau of Labor Statistics figures out Wednesday. The median estimate in a Bloomberg survey of economists called for a 1% rise.