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.
Related articles:
Related suggestion:
Yemen's Houthis say they targeted Western shipsChina economy update: Evergrande shares plunge 70 per centBiden hosts Kishida in official visit as US, Japan bolster defense tiesUS defense chief denies genocide committed in GazaUS Postal Service seeks to hike stamp prices to 73 centsFood price hikes stall, thanks to lowered cost of fruit and vegesStudents petition Parliament to keep free school lunches fundingFood price hikes stall, thanks to lowered cost of fruit and vegesUN expert visits Motueka to learn about Nelson Tenths caseClimate activist Greta Thunberg detained twice at demonstration in The Hague
2.9376s , 6505.8046875 kb
Copyright © 2024 Powered by Workers' paychecks grew faster in the first quarter, a possible concern for the Fed ,International Impression news portal