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    Home ยป U.S. Wage Hikes Struggle to Keep Up with Inflation
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    U.S. Wage Hikes Struggle to Keep Up with Inflation

    June 30, 20211 Min Read
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    U.S. Wage Hikes Struggle to Keep Up with Inflation
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    American wages have continued to rise in the past months, but increases are being offset by the hikes in consumer prices.

    • Economists expect wages in the United States to post a third monthly gain in June to mark a 3.6% increase year-on-year. Businesses have continued to offer higher pays in a bid to attract employees.
    • Consumer prices have grown at faster rates, with the Federal Reserve’s preferred consumer-price up 3.9% year-on-year in May. This is the fastest in 13 years or since 2008.
    • The latest figures are weighing on discussions regarding President Joe Biden’s $4-trillion economic plan. Republicans are capitalizing on the higher prices to dismiss the spending agenda.

    Households with lower incomes are bearing the brunt of inflation, which the government has maintained as transitory.

    Source: Bloomberg

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