Story at a glance
- A new survey found among 61 percent of workers who have seen a pay bump or achieved a better paying job in the past year, just two in five say their new income has matched or exceeded inflation.
- Close to half of the same group said their wages failed to meet the demand.
- Overall, 55 percent of American workers said their wages have not kept up with inflation.
Americans are struggling to keep pace with inflation despite half of the workforce receiving pay boosts in the past year, according to a new survey.
Bankrate’s September Pay Raise survey found that among 61 percent of workers who have seen a pay bump or achieved a better paying job in the past year, just two in five say their new income has matched or exceeded inflation.
Close to half of respondents in the same group said their wages failed to meet the demand.
“Inflation that has run at the highest levels in more than four decades has stripped buying power away from households of all walks of life,” Greg McBride, Bankrate’s chief financial analyst, said in a statement.
“Even half of those receiving a pay raise, getting a promotion, or taking on new responsibilities said that higher pay falls short of the increase in household expenses,” McBride added.
Overall, 55 percent of American workers said their wages have not kept up with inflation, while around a third say their wages have met the demand.
Yet there are generational differences. Around half of Millennial and Gen Z employees said their wage increases matched or exceeded inflation, while a third of Baby Boomers and Generation X employees said the same.
Still, amid an economic downturn and fears of recession, most workers are not fearful they will lose their jobs, the survey found.
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Gas prices are falling while the prices of other household goods and energy sources are rising, leading to a slight increase in inflation in August.
The Consumer Price Index released Tuesday, which measures inflation, rose by 0.1 percent last month despite the continued decline of gasoline prices from record highs earlier this summer.
“Today’s higher-than-expected CPI reading shows that we still have a long way to go before inflation returns to more normal levels,” said Scott Brave, lead consumer spending economist at Morning Consult, in an analysis.
“While the recent decline in gas prices has provided a welcome reprieve for consumers, it represents just one part of the larger consumer basket, and prices for much of that basket continue to increase at rates that far exceed incomes,” he added.
Nationwide average gas prices fell to $3.69 per gallon on Thursday, according to data from the American Automobile Association (AAA).
Published on Sep 15,2022