Inflation versus Wage Growth: Your money has less purchasing power

The Trump administration and the majority of media suggest that the economy is going great. Unfortunately, there are indicators which suggest otherwise.

The Labor Department stated Friday that the consumer price index (CPI) increased 0.2 percent in July. Annual inflation matched the 2.9 percent pace from June, which had been the highest level since February 2012.

2018 wage-growth

This means your money has less purchasing power. This also means wage increases did not keep up with inflation.

“Adjusted for inflation, average weekly earnings have fallen 0.1 percent in the past 12 months. “