Important wage inflation measure for the Fed rose less than expected in Q4

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Important wage inflation measure for the Fed rose less than expected in Q4
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The employment cost index increased 1% in the October-to-December period, the Labor Department reported Tuesday.

The employment cost index increased 1% in the fourth quarter, less than the 1.1% expectation and slower than the third quarter, the Labor Department reported Tuesday.

Employment costs increased at a slower than expected pace in the fourth quarter, indicating that inflation pressures on business owners are at least leveling off., a barometer the Federal Reserve watches closely for inflation signs, increased 1% in the October-to-December period, the Labor Department reported Tuesday. That was a bit below the 1.1% Dow Jones estimate and less the 1.2% reading in the third quarter. It also was the lowest quarterly gain in a year.

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