Is slowing wage growth good news for inflation?

Oct 31, 2023
But recent union victories may keep upward pressure on wages.
The Federal Reserve wants wage growth to slow because if employers spend more on labor, they'll likely try to make up that profit by raising prices.
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How much are employers paying for labor? That's where the ECI comes in.

Oct 30, 2023
The employment cost index, a favorite Federal Reserve data point, captures the cost of employing people, including benefits.
The employment cost index doesn't just calculate wages. It also factors in how much employers spend on benefits.
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Wage growth may be slowing, but consumers still have the power to spend

Jul 28, 2023
Wages are rising faster than prices. So on average, people’s purchasing power is increasing.
Purchasing power has increased because prices have been rising more slowly, said economist Preston Mui.
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New data shows companies are spending more on workers

Apr 29, 2022
Wages are rising and benefits are getting better. Trouble is, inflation is outpacing pay.
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The statistic Fed Chair Powell uses to keep an eye out for wage inflation

Jan 26, 2022
The central bank will scrutinize the employment cost index for 2021’s fourth quarter for signs that rising pay could fuel rising prices.
Federal Reserve chief Jerome Powell has turned his efforts toward containing inflation. The employment cost index is one of the economic indicators the Fed examines in setting monetary policy.
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Employee compensation growth stalls out

Jul 31, 2015
Labor costs and wages make anemic gains in second quarter reports.