Inflation Outpaces Wages Again as Real Paychecks Shrink — SkimNews
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- Inflation has outpaced wage growth over the past year, devouring pay gains and squeezing Americans' real purchasing power
- Real wages have continued to decline as the income squeeze deepens for consumers, even as job growth increases
Why it matters: When inflation outpaces wages, households lose purchasing power without any nominal income change — effectively a stealth pay cut. The consensus across outlets is that this trend has resumed after prior periods of wage catch-up, squeezing consumer budgets just as job growth continues to rise, leaving workers with less buying power despite holding jobs.
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