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Savings & Retirement

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

By

Suzanne Woolley

March 10, 2022, 2:46 PM UTCUpdated onMarch 10, 2022, 7:19 PM UTC

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.