US consumer prices rose 3.8% over the past year, exceeding the 3.6% increase in wages, marking the first time in about three years that inflation has outpaced paycheck growth. The gap suggests many Americans are seeing declines in real purchasing power as living costs rise faster than earnings.

2026-05-12

US consumer prices rose 3.8% over the past year, exceeding the 3.6% increase in wages, marking the first time in about three years that inflation has outpaced paycheck growth. The gap suggests many Americans are seeing declines in real purchasing power as living costs rise faster than earnings.