Why wages are finally picking up. And will it last?

The rise last month means worker pay is finally increasing at a noticeably higher pace than the 2.3 percent yearly inflation measure tracked by the Federal Reserve. And that gives households a little more breathing room in their monthly budgets.

Until now, pay increases have accelerated, but gradually. They’ve averaged about 2.7 percent in 2018, up from 2.5 percent the prior two years.

Economists have expected yearly pay increases to hit 3 percent since unemployment dipped below 5 percent in 2016 as more employers began struggling to find workers.