Despite the highest inflation in 40-years, real wages are higher than pre-pandemic as of March 2022. Real wages in March 2022, as calculated by the ratio of Avg. Hrly Earnings to CPI, is actually up 1.8% since Jan 2020!
Average Hourly Earnings are of Production and Nonsupervisory Employees, Total Private, which Paul Krugman used in his Jan 25th op-ed discussing
the inflation narrative.
Source: Ratio of Average Hourly Earnings to CPI
#economy #inflation #wages
Despite the highest inflation in 40-years, real wages are higher than pre-pandemic.
Real wages, as calculated by the ratio of Avg. Hrly Earnings to CPI is actually up 3% since Jan 2020!
Average Hourly Earnings are of Production and Nonsupervisory Employees, Total Private, which Paul Krugman used in his Jan 25th op-ed discussing the inflation narrative.
#economy #inflation #wages
A lot of people are focusing on y/y but last year was not a normal year. We should look at total CPI and wage increase since the start of the pandemic.
Since Jan 2020 CPI is up 9%
Since Jan 2020 Average Hourly Earnings are up 12.6%
#economy #inflation