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.
UK court rules that extension of UK police powers to intervene in protests is unlawful
Canadian police charge 2 former UN employees with conspiracy to sell military equipment in Libya
Biden’s cannibal remarks send US
Orioles call up another top prospect in OF Heston Kjerstad, who hit 10 HRs in 21 games at Triple
UK court rules that extension of UK police powers to intervene in protests is unlawful
In Argentina, the government's austerity plan hits universities and provokes student protests
Police find body of missing Maine man believed killed after a search that took nearly a year
Thailand welcomes the return of trafficked antiquities from New York's Metropolitan Museum
FTC sues to block Tapestry's $8.5 billion acquisition of Capri
Cristiano Ronaldo to lead Portugal into record sixth European Championship
Hong Kong schools ban books, warn teachers not to get 'political' — Radio Free Asia