US labour costs rose sharply as the pace of inflation quickened, providing additional cover for the Federal Reserve to act forcefully to temper demand in the world’s largest economy.
The latest employment cost index (ECI) report, which tracks wages and benefits paid out by US employers, climbed sharply in the fourth quarter. Total pay for civilian workers during that period increased 1 per cent, just shy of the record-setting 1.3 per cent jump seen between July and the end of September, and slightly below economists’ expectations.
That translated to a 4 per cent jump for the 12-month period ending last month.
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