How inflation has eaten into Americans' average weekly pay in the past year
On paper, the average hourly wage Americans have earned has steadily climbed over the past year, from $30.76 to $32.36. But when inflation is taken into account, that increase seems to evaporate. According to the U.S. Bureau of Labor Statistics, Americans have effectively experienced a 12-month pay cut of $0.31 per hour. Combined with a decrease in hours worked, Americans' inflation adjusted average weekly pay has decreased by only $13.20 from one year ago. The BLS released data Tuesday showing that monthly inflation had picked up 0.1%, while annualized inflation had climbed 8.3%. The data led markets to tank as investors forecast that the Federal Reserve would maintain its aggressive monetary policy as it works to bring down inflation. "Clearly the high inflation is undermining Americans’ purchasing power ," Mark Zandi, chief economist at Moody's, told NBC News. While inflation moderated to 8.3% on an annual basis in August, it is still higher than the 5.2% hourly ea...