Why This Week’s Inflation Numbers Are Good for Workers
This week’s CPI release brought welcome news: Core inflation has returned to 2017–2019 levels, and real wage growth is outpacing price growth.
"While real wages for the median person declined slightly through 2022, in 2023, we've seen inflation fall, while wages have not fallen by as much," Roosevelt’s Mike Konczal told NBC News.
"Wage growth at 4.5 percent over this summer—that is absolutely consistent with inflation continuing to fall."
And the data continues to be consistent with a soft landing, as Konczal and Roosevelt Fellow Justin Bloesch wrote prior to the CPI release.
“Inflation and wage growth continue to slow even as growth is moderately strong, workers continue to rejoin the labor force, and tight labor markets help decrease long-standing inequalities,” they write.
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