Some Good News for the US Inflation Outlook: Q1 ECI

From wellsfargo.bluematrix.com

The first quarter's employment cost index reflected the ongoing softening in the labor market. Labor costs advanced 0.9% in Q1, bringing the year-over-rate down to nearly a four-year low of 3.6%. While concern about inflation has picked up amid dramatic changes to trade policy, inflationary pressures from the labor market continue to subside. chart Labor compensation growth continues to moderate. The employment cost index (ECI), the Federal Reserve's preferred measure of employment costs, rose 0.9% in the first quarter, in-line with expectations. Although the quarterly run rate is still hotter than pre-pandemic ... (full story)