Inflation and Deflation

American workers' paychecks show little sign of accelerating in 4th quarter

American workers' paychecks show little sign of accelerating in 4th quarter

U.S. paychecks increased moderately in the final three months of last year, yet the gain was little changed from the sluggish post-recession trend.

The employment cost index, which tracks wages and benefits, rose 0.6 percent in the October-December quarter, the Labor Department said. That's the same as the previous three months.

In the past year, salaries and benefits have risen just 2 percent, the same annual pace as the previous two quarters. That is below the roughly 3.5 percent rate that is consistent with a healthy economy.

Americans are seeing some improvement in inflation-adjusted wages. The Fed's preferred inflation gauge rose just 0.3 percent in 2015, held...

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