Americans Continue to Enjoy Real Wage Gains as Inflation Slows

Americans Continue to Enjoy Real Wage Gains as Inflation Slows

The consumer price index came in better than expected this morning, showing continued progress in the fight against inflation. Prices were flat over the month, with year-over-year inflation falling to 3.2% from 3.7%. Expect it to dip below 3% next month.

With 3.2% inflation over the year and 4.1% wage growth, American workers continue to experience positive real wage growth. They have now done so since May, 2023, following a 25-month stretch of real wage declines during the pandemic inflation surge. 

Expect consumer spending to remain resilient as the purchasing power of American wage and salary workers gradually recovers. That boost should be enough to offset the cooling effect on consumer spending of the October student loan repayment restart and high interest rates on credit card debt and auto loans. Resilient spending should fuel continued job growth, and keep the long-predicted recession at bay. 

Take a tour of the CPI report through ZipRecruiter visualizations HERE.