Labor Cost Index

The Labor Cost Index (LCI), released quarterly by Eurostat, shows the total cost on an hourly basis of employing labour in the Eurozone. In other words, the LCI measures the cost pressure arising from the production factor 'labor'. Labor costs are divided between wages and salaries and non-wage costs, and can be a leading indicator of inflation. Generally, a high reading tends to support the Euro (EUR), while a low reading tends to weigh on it.