How Wages Compare to Inflation (Spoiler: It’s Not Good)
A new study from the Urban Institute examined how wages are comparing to inflation, and the answer isn’t great for Americans’ wallets.
The good news is that wages are increasing — but at a far slower pace than the soaring costs of gasoline, groceries, and rent.
The rate of inflation in the U.S. hit a staggering 7.9% in February, the highest since 1982. Between February 2021 and February 2022, gas prices increased nearly 40%. Hourly wages only went up about 5% in that time.
Meanwhile, rent prices in the average metropolitan area increased by 15% between January 2021 and January 2022.