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Inflation Is Rising Faster Than Pay for Many American Workers

New research finds many lower-income earners are looking to tax refunds to ease financial pressures.

Thirty-eight percent of consumers said they tried to spend less by cutting non-essential spending and canceling or putting off trips.

Thirty-eight percent of consumers said they tried to spend less by cutting non-essential spending and canceling or putting off trips.

Photographer: George Frey/Bloomberg
Updated on

For all the talk of wage inflation, many Americans say their salaries aren’t keeping up with prices. 

In February, 73% of “lower earners,” defined as those with household income of less than $25,000 annually, said they’d felt the impact of inflation recently, but only 9% said their wages had kept up with the cost of living, according to a report from the Capital One Insights Center. Across all income levels, just 18% of consumers said their wages were keeping pace with the higher cost of living.