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Long Term Perspective
Federal Reserve officials closely monitor the employment cost index, which measures total compensation costs. Compensation includes wages and salaries as well as benefits. Compensation costs surged at the end of 1999 and beginning of 2000, but stabilized during the year. Short Term Perspective
The ECI accelerated in the first half of 2000, boosted by surging health care costs. Compensation costs held steady in the third quarter, reassuring Fed officials that costs have not accelerated yet.
 Excluding Food & Energy Prices : CPI vs. PPI • Employment Cost Index vs. Wages & Salaries • Alternative Inflation Measures |
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