Got a Raise in Past 2 Years? It's Likely Now All Eaten by Inflation.

Key Points:

• Inflation has outpaced wage growth in the US over the past two years, effectively erasing nearly all real wage gains for the average worker since January 2025, despite nominal increases in hourly pay.
• The consumer price index (CPI) rose 3.7% year-over-year in September 2027, higher than economists' expectations, with significant price increases in gasoline contributing to affordability challenges.
• Consumer sentiment has declined sharply since early 2025, influenced by rising costs of living and geopolitical factors such as the war in Iran, which have exacerbated inflationary pressures on households.
• While average weekly earnings have increased due to longer working hours, many middle- and lower-income Americans continue to struggle as essential expenses consume a larger share of their income.
• Inflation and affordability concerns are expected to influence voter priorities in the upcoming midterm elections, with many Americans urging elected officials to focus on reducing the costs of everyday essentials and housing.