US labor costs post moderate rise in third quarter

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US labor costs post moderate rise in third quarter




FILE PHOTO. Amazon employees work at a warehouse for the company's merchandise in New Jersey, USA.


© Reuters / LUCAS JACKSON
FILE PHOTO. Amazon employees work at a warehouse for the company’s merchandise in New Jersey, USA.


WASHINGTON, Oct 30 (Reuters) – Labor costs in the United States rose moderately in the third quarter, suggesting that inflation could remain weak and allow the Federal Reserve to leave interest rates near zero for a time as the economy it gradually recovers from the pandemic-induced recession.

The employment cost index, the broadest measure of labor costs, increased 0.5% in the last quarter after having advanced by the same margin in the second quarter. The reading reduced the year-on-year rate to a 2.4% rise from the 2.7% advance in the April-June period.

The index is closely watched by monetary authorities and economists as one of the best measures of labor market capacity and a barometer of core inflation in the United States. The increase last quarter was in line with market expectations.

(Reporting by Lucia Mutikani. Edited in Spanish by Marion Giraldo)

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