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Real earnings outpace inflation, helping consumers offset price growth

Jul 11, 2024
Raises in real earnings help offset price increases but not all consumers share the benefits equally.
Even though real earnings have recently outpaced inflation, consumer sentiment is still pretty glum.
Frederic J. Brown/AFP via Getty Images

Inflation ticked up to 3.4% in December. How are wages doing?

Jan 11, 2024
Wage growth is slowing, and those at the top of the earnings spectrum have done better than those at the lower end.
“When wage growth was very hot, the job switchers could go get another job and get a pretty good increase," said Frank Fiorille at Paychex. "We’ve really seen that come off the boil.”
Mario Tama/Getty Images

September's real wages are expected to rise

Oct 9, 2023
And that would mean your paycheck's purchasing power would be getting a boost relative to inflation.
Rising real wages means consumers are "making up for the consumption power that they lost when prices were rising faster than wages," says Erica Groshen, former Bureau of Labor Statistics commissioner.
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Even as real wages rebound, low-income households are playing catch-up

Aug 22, 2023
Average hourly earnings are now rising faster than prices. But two years of high inflation have left many low-income people in a financial hole.
Inflation can take a heavier toll on low-income workers because a large proportion of their pay goes toward necessities like food.
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Are wages outpacing inflation? Depends on what you do.

Jan 12, 2022
Real average hourly pay increased 0.1% in December. Generally, wages are beating inflation, but some industries are lagging.
While pay in leisure and hospitality is increasing faster than prices, sectors like construction and manufacturing are lagging behind.
Paul J. Richards/AFP via Getty Images

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