Wage growth returns with cooling inflation

Workers are seeing real pay gains on a monthly basis as inflation cools, this morning’s consumer price index report shows.

By the numbers: Real average hourly earnings rose 0.2% from February to March.

• From January to February, they decreased 0.1%.
• Compared to March 2022, real average hourly earnings are still down — by 0.7%. But that's an improvement from the 1.3% dip from February 2022 to February 2023.

What to watch: With overall inflation sitting at 5% now, there’s one big sector of the economy where wages are rising faster — leisure and hospitality, where demand for workers remains strong.

Here’s what else the Fed is watching.

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