Real Wages Fall Behind 3.4% Inflation as August CPI Outpaces Pay Growth
The August 2026 Consumer Price Index delivered a familiar problem for workers: prices are still rising faster than paychecks. For the full breakdown of the August report, see August CPI Reaccelerates on Gasoline: Headline Holds at 3.4% as Core Keeps Cooling . Headline inflation held at 3.4% on a 12-month basis, according to the Bureau of Labor Statistics report released September 11, 2026, while average hourly earnings for private nonfarm employees rose just 3.1% over the same period. The math is straightforward. When prices rise faster than wages, purchasing power declines. That is exactly what happened in August, continuing a pattern that has persisted through much of 2026.
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