The Labor Department reported that the employment cost index, which the Federal Reserve uses to assess changes in the U.S. labor market, increased by 1% from Q3 to Q4 2022.  Wages and salaries were up 1% during that period, down from the 1.3% growth rate seen in the previous quarter. The employment cost index, which measures the total costs employers spend on employees, was up 5.1% on a year-over-year basis. Consumer prices rose 6.5% in 2022, meaning that wages did not raise as much as inflation last year. Average hourly pay for private-sector workers grew by 4.6% YoY in December. Annualized wage growth rates peaked at 5.6% in March 2022. Federal Reserve officials will meet on Wednesday to decide whether to raise rates for the sixth straight meeting. Analysts expect a 25-basis-point rate hike, down from the 50-basis-point hike seen in December.