US employment costs rose at a slower-than-expected pace in the closing months of 2022, but probably not enough to derail the Federal Reserve from raising interest rates further and keeping them higher for longer to reduce inflation.
The employment cost index, a broad gauge of wages and benefits, increased 1% in the fourth quarter, according to Labour Department figures released Tuesday. Labour costs have risen at least 1% for six straight quarters, extending what was already a record streak in data back to 1996.
The median estimate in a Bloomberg survey of economists called for a 1.1% advance.
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