Thursday, February 5, 2026

Real Wages and Cost of Living

How wages compare with inflation since 2020
https://www.cnbc.com/2026/01/13/how-wages-compare-with-inflation-since-2020.html
After falling behind during the inflation surge, wage growth has outpaced inflation over the past two years, allowing pay to catch up by most measures. Even so, over the full period since the pandemic began, inflation-adjusted wages show little net improvement overall.
Since the first quarter of 2020, wages adjusted for CPI have been largely flat across several common measures, according to analysis from the Hamilton Project, a nonpartisan economic research group. Taken together, the data show that inflation-adjusted wage growth since 2020 has been close to zero.
 
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Many U.S. Households Feel Like They Can’t Get Ahead Financially – and They’re Right
https://crr.bc.edu/many-u-s-households-feel-like-they-cant-get-ahead-financially-and-theyre-right/
A household with $83,730 is at the 50th percentile, right in the middle of the income distribution.  Those with $175,700 fall at the 80th percentile, putting them in the top 20% of all households.  Only those at the 90th percentile and above have incomes in excess of $250,000.