U.S. unit labor costs grew far less than initially thought in the third quarter, pointing to a still favorable inflation outlook even though price increases have not moderated much.
Consumer spending increased solidly in July, arguing against a half-percentage-point interest rate cut from the Federal Reserve next month.
U.S. prices increased moderately in June as the declining cost of goods tempered a rise in the cost of services.
U.S. monthly inflation was unchanged in May as a modest increase in the cost of services was offset by the largest drop in goods prices in six months.