Wages and salaries for allcivilian workers rose 3.1 percent from a year earlier, the mostsince 2008.

U.S. employment costs rose less than forecast in the fourthquarter as wage and salary gains cooled, adding to signsthat inflation pressures remain mild despite a strong job market.

The employment cost index, a broad gauge monitored by theFederal Reserve, increased 0.7 percent in the October-Decemberperiod from the prior quarter, according to Labor Department datareleased Thursday. That compared with the median estimate ofeconomists for a 0.8 percent increase. Wages and salaries rose 0.6percent following a 0.9 percent gain in the prior period.

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