US Paychecks Are Outpacing Inflation
- Median earnings ran above consumer prices in first quarter
- Strong wage gains may tilt Fed toward another rate hike in May
Photographer: Scott Eells/Bloomberg
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US workers are starting to see pay gains run faster than inflation, amplifying their purchasing power and giving the Federal Reserve reason to raise interest rates again next month.
Median weekly earnings of full-time wage and salary workers were 6.1% higher in the first quarter of 2023 compared to the same period a year earlier, the Bureau of Labor Statistics said in a report Tuesday. Inflation during that time ran at 5.8%, the BLS said.