Average real earnings plunged 3.6% in past year as inflation made workers poorer

Inflation accelerated to an excruciating 9.1% for the 12 months ending in June, the highest level in four decades, according to the consumer price index report released on Wednesday. Hourly earnings have failed to keep pace.

“That’s just the byproduct of the fact that inflation is the highest in 40 years,” Bankrate Chief Financial Analyst Greg McBride said of the decline in real hourly earnings. “If you measure it in nominal dollars, wage growth is the best it’s been in years, but you would never know it because inflation is at a four-decade high, and otherwise robust gains in wages are being more than consumed by rising household costs.

Rising energy prices accounted for half the total inflation, with the gasoline index rising a whopping 59.9%. Republicans are hitting at President Joe Biden and Democrats for the high inflation and drawing a line between wages and increased prices to attack them.

Less money and less spending power.

Lets go brandon!

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Small business sentiment plunges to 48-year low as inflation worries mountEconomic confidence among small business owners plunged to another low in June as worries over scorching hot inflation and an incredibly tight labor market mount.
Source: FoxBusiness - 🏆 458. / 53 Read more »

Big business is exploiting the inflation crisis to boost their own earnings | OpinionRemoving tariffs now would only benefit China at the expense of U.S. manufacturers, their workers, and even America’s consumers. Big businesses are in the market... Businesses maximize profits to give back to their shareholders. They would be fools, not to. Perhaps the writer and the 🤡's Pennlive need Economics 101
Source: PennLive - 🏆 463. / 53 Read more »