Wall Street

Tight U.S. labor market keeps upward pressure on wages; inflation heats up

Published by
Reuters

By Lucia Mutikani WASHINGTON (Reuters) – U.S. labor costs increased strongly in the second quarter as a tight jobs market boosted wage growth, which could keep inflation elevated and give the Federal Reserve cover to continue its aggressive interest rate hikes. Other data on Friday showed consumer spending accelerating in June, though the uptick was tied to higher costs for gasoline as well as a range of other goods and services, with monthly prices surging by the most since 2005. Soaring inflation contributed to the economy’s 1.3% contraction in the first half of this year, leaving it on the …

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