WASHINGTON (AP) — Pay and benefits for America’s workers grew more quickly in the first three months of this year, a trend that could contribute to higher inflation and raise concerns about the future path of price increases at the Federal Reserve.
Compensation as measured by the government’s Employment Cost Index rose 1.2% in the January-March quarter, up from a 0.9% increase in the previous quarter, the Labor Department said Tuesday. Compared with the same quarter a year earlier, compensation growth was 4.2%, the same as the previous quarter.
The increase in wages and benefits is good for employees, to be sure, but could add to concerns at the Fed that inflation may remain too high in the coming months. The Fed is expected to keep its key short-term rate unchanged after its latest policy meeting concludes Wednesday.
Fed Chair Jerome Powell and other officials have recently backed away from signaling that the Fed will necessarily cut rates this year, after several months of higher-than-expected inflation readings. Big price increases for rents, car insurance and health care have kept inflation stubbornly above the Fed’s 2% inflation target.
Australia, New Zealand send planes to evacuate nationals from New Caledonia
Jamie Vardy and his Leicester team
Advocates push states to save foster children's federal benefits, not spend them
Wang/Sun win mixed doubles at WTT 2024 Saudi Smash
Colton Herta shows speed as Honda fights back in penultimate Indy 500 practice session
Olympic champion Horigome falls in Olympic Qualifier Series
Wayfarers Chapel: Landslide forces closure of Southern California chapel
Tchouaméni a doubt for Real Madrid's UCL final
'Constantly learning' Imanaga off to impressive start with the Chicago Cubs
Interior Design Masters final crowns Rosin the winner with her VERY colourful holiday lodge re
Student fatally shot, suspect detained at Georgia's Kennesaw State University
Barcelona extend Cubarsí contract to 2027