Americans’ pay gains rose faster than expected so far this year
It wasn’t just inflation starting off 2024 hot, paychecks did as well. A closely watched measure of labor costs showed that compensation growth accelerated much faster than expected during the first three months of the year, providing an unwelcome data point for Federal Reserve officials looking for inflation pressures to ease. The Employment Cost Index (ECI) rose a seasonally adjusted 1.2% last quarter, faster growth than the 0.9% increase the prior quarter, according to Bureau of Labor Statistics data released Tuesday.
