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But labor costs rose only 0.8 percent in the last year, indicating that employees are not getting big raises and that inflation is likely to remain tame.
That means that prices will have to remain tame in the months ahead to ward off a half-point rate increase by the Fed.
The good news is that inflation will remain tame, interest rate increases should be muted and P/E multiples may not have to contract significantly.
Despite the rise in short-term rates over the past year, America's GDP growth is well above trend, and although consumer prices remain tame for now, slowing productivity and a strengthening labour market could push up inflation.
10-Year Treasuries Rise By Bloomberg News The benchmark 10-year Treasury note gained yesterday as yields at an eight-month high lured investors to the government securities amid signs inflation will remain tame as the economy rebounds.
Even with reassurances by central bankers from major economies that inflationary pressures remain tame, policymakers are going to find it difficult to make a timely exit from the extraordinary stimulus measures adopted throughout the financial crisis during the past 18 months.
Similar(53)
Price increases remained tame.
Inflation remained tame.
Inflation, despite high energy prices, has remained tame.
Hopes were high amid signs that inflation remained tame and the jobs market was improving.
Coming statistics for December are expected to show that industrial production grew and inflation remained tame.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com