U.S. employment costs accelerated during the third quarter at their quickest pace in over two years, suggesting that a tight jobs market is putting some upward pressure on labor costs, which will likely keep Federal Reserve officials on edge about inflationary risks in the economy, the Wall Street Journal reports.

A separate report, which measures consumer confidence, showed a slight drop in October amid concerns about jobs and the current state of the economy.

During the third quarter, the employment-cost index rose 1% — the fastest quarterly increase since the second quarter of 2004 — after advancing 0.9% in the previous three-month period, the Labor Department said Tuesday. Economists had expected a 0.9% increase in employment costs in the third quarter, according to a survey by Dow Jones Newswires.

Overall wages and salaries grew 0.9%, matching the second-quarter gain. Benefit costs, which include health insurance and pensions, swelled 1.1% after rising 0.8% in the second quarter.

Read the full Wall Street Journal story

.(subscription required)