American Wages Still Lag Behind Inflation Despite Easing Prices

New data reveals that real wages have not kept pace with inflation, with recovery now expected by mid-2025.

Since January 2021, U.S. prices have risen by 20% while wages increased by only 17.4%, according to Bankrate's Wage to Inflation Index.
Real wage growth over the past 16 months has not been sufficient to offset the previous 25 months of higher inflation.
The Federal Reserve is expected to cut interest rates soon to avoid stalling economic growth and worsening the job market.
Core inflation, excluding food and energy, rose 3.2% in August, contributing to the slower wage recovery.
Wages in sectors like leisure and hospitality have grown more than the average, while education sector wages lag significantly.