Trump Hit With Grim Reality Check on Americans’ Pay

Key Points:

• Since President Trump took office in 2025, American workers' real wages have barely increased, with average hourly earnings rising only 27 cents after inflation adjustments, according to the Bureau of Labor Statistics.
• Despite Trump's claims that inflation is "way down," June's 3.5% wage growth was completely offset by a 3.5% rise in inflation, leaving workers with no real improvement in purchasing power.
• Lower gasoline prices provided a modest boost to purchasing power in June, but rising costs for essentials like milk, beef, and energy—exacerbated by renewed U.S.-Iran tensions and higher oil prices—are putting continued pressure on household budgets.
• Experts warn that many workers' wages are not keeping pace with inflation, and the recent escalation in the U.S.-Iran conflict, including a naval blockade and increased strikes, has pushed oil prices higher, potentially worsening the economic strain.
• The rising cost of living and fuel prices pose political risks for Republicans ahead of the midterm elections, particularly in key battleground states where voters prioritize economic issues.