Americans getting paid more, could increase inflation

COLUMBIA, S.C. (CNN)— American workers are getting paid more, and that could push inflation higher.

The Bureau of Labor Statistics says workers were paid 1.2% more in the first quarter of the year, compared to the previous three months.

It’s call the “Employment Cost Index” and the Fed watches it closely.

When businesses pay people more, they typically pass that cost on to consumers, feeding inflation.

As a result, economists expect the Fed to raise interest rates by a quarter point at its meeting next week.