Everyday Prices Outpace CPI by 3.9 Points, Cutting Daily-Cost Real Wages 3.4%
Updated
Updated · Econbrowser · Jun 10
Everyday Prices Outpace CPI by 3.9 Points, Cutting Daily-Cost Real Wages 3.4%
2 articles · Updated · Econbrowser · Jun 10
Summary
Daily-cost real wages are estimated to be down 3.4% from January 2025, even as CPI-adjusted average hourly earnings have merely returned to roughly their January 2025 level.
The gap stems from faster inflation in recurring purchases: the Everyday Price Index is nowcast to have risen 8.6% since January 2025, versus 4.7% for headline CPI.
Inflation also looks worse for wage earners than for all urban consumers, with the CPI for wage earners and clerical workers accelerating faster and leaving real wages 0.7 percentage point below January 2025.
The divergence suggests households focused on groceries, gasoline and other frequent expenses are feeling a sharper squeeze than standard CPI-based wage measures imply.