Amherst Pierpont economist Stephen....>

US DATA REACT: Amherst Pierpont economist Stephen Stanley said "as expected, the

Employment Cost Index rose by 0.7% in the three months ended September, an

acceleration from a surprisingly mild 0.5% increase in the spring."

- He added "wages and salaries advanced by 0.7% while benefit costs went up by

0.8%. The year-over-year increase ticked up to 2.5% in September, the

second-highest reading since 2008."

- He said that 2.5% "wage inflation "sounds awfully tepid, but considering that

inflation is running below 2% and productivity growth has averaged just over

0.5% per year since early in this decade, the latest ECI reading is actually

evidence that tight labor markets are generating a little bit of wage inflation.

With the unemployment rate marching toward 4%, wages are likely to continue to

(at least gently) accelerate."