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US Labor Costs Growth Beat Expectations in Third Quarter
U.S. labor costs increased solidly in the third quarter amid strong wage growth, the latest indication that the Federal Reserve could keep interest rates higher for some time. The Employment Cost Index, the broadest measure of labor costs, rose 1.1% last quarter after increasing 1.0% in the April-June period, the Labor Department said on Tuesday. Economists polled by Reuters had forecast the ECI rising 1.0%. Labor costs increased 4.3% on a year-on-year basis after advancing 4.5% in the second quarter. The report followed on the heels of news last week that the economy grew at its fastest pace in nearly two years in ... (full story)