U.S. wages and prices each rose 0.4% in October, but real hourly wages stayed the same

US private-sector real average hourly earnings were flat in October as nominal wages and consumer prices each rose 0.4%, leaving purchasing power unchanged, the Bureau of Labor Statistics reported. Real weekly earnings were also unchanged. The report follows BLS data showing nonfarm payrolls rose 165,000 in October with unemployment at 4.1%, above the prior 12-month average monthly gain of 48,000, while August and September payrolls were revised up by a combined 84,000. Gains were led by professional and business services (+70,000), health care (+42,000) and transportation and warehousing (+25,000). The stagnation in real pay matters because it suggests inflation is fully offsetting wage growth, keeping household spending power and the Federal Reserve's rate path in focus.