FXStreet (Edinburgh) – Derek Halpenny, Head of European GMR at BTMU, noted the ECI as a better indicator of the wage inflation in the labour market.
“Today’s Employment Cost Index is another report that will be important”.
“This gets a lot less attention than the wage data in the NFP report but is much more detailed and has been indicating a stronger pace of wage increase than the hourly earnings data”.
“The overall salaries and wage component increased on an annual basis by 2.6% in Q1 and if we get a consensus 0.6% Q/Q gain in Q2, the annual rate will decelerate modestly to about 2.4/2.5% – still indicating stronger wage growth relative to what’s reported in the NFP data”.
“That again will be enough to confirm a gradual tightening of the labour market conditions, consistent with what the FOMC is now telling us”.
Derek Halpenny, Head of European GMR at BTMU, noted the ECI as a better indicator of the wage inflation in the labour market…
(Market News Provided by FXstreet)