Americans’ Real Earnings Fall 0.69% in May as 4.3% Inflation Outruns 3.4% Wage Growth
Updated
Updated · mises.org · Jun 18
Americans’ Real Earnings Fall 0.69% in May as 4.3% Inflation Outruns 3.4% Wage Growth
1 articles · Updated · mises.org · Jun 18
Summary
Average real earnings fell 0.69% from a year earlier in May, the second straight monthly decline after nominal hourly pay rose 3.4% but CPI climbed 4.3%.
May’s inflation surge was broad enough to keep wages underwater: fuel prices jumped 23.5% year over year, food rose 3.1%, and core CPI hit a nine-month high.
Producer prices added to the pressure, with May PPI up 6.45% from a year earlier — the highest in 42 months — signaling higher costs for businesses that can feed through to consumers.
The drop in real pay echoes the 2022-23 stretch of persistent wage erosion and lands hardest on lower-income households, which the New York Fed has already flagged as facing elevated financial hardship.