US Wages Match 3.5% Inflation in June, Leaving Real Pay Up Just 27 Cents Since 2025
Updated
Updated · The Washington Post · Jul 15
US Wages Match 3.5% Inflation in June, Leaving Real Pay Up Just 27 Cents Since 2025
3 articles · Updated · The Washington Post · Jul 15
Summary
Average hourly pay rose 3.5% from a year earlier in June, exactly matching 3.5% inflation and leaving workers’ buying power little changed overall.
Real average hourly earnings did climb 0.8% from May — the biggest monthly gain in more than a year — after lower gas prices briefly eased living costs.
That relief looks fragile as gas prices rise again with renewed U.S.-Iran conflict, after spring oil-price gains had nearly erased earlier real-wage improvements under Trump.
Workers who stay in the same job often get raises of about 3%, while a sluggish labor market and the lowest quit rate since 2020 limit chances to switch jobs for bigger pay gains.
The squeeze is becoming a political risk for Republicans ahead of the midterms, especially in toss-up districts where voters are already focused on affordability.