Part 4/8:
Delving deeper into the economic data, a troubling trend emerges: inflation continues to outpace real wage growth. Despite recent claims of higher wage increases than inflation, the reality on the ground suggests otherwise. Average hourly earnings for employees have failed to keep up with the ongoing inflationary wave. As revealed by data from the Consumer Price Index, while nominally, wage growth is visible, it does not reflect the daily realities faced by workers burdened by rising living costs.
Wages in the late 1990s and during previous economic downturns faced similar patterns, where inflation would surge, leading to diminished real earnings. This trend raises concerns that current wage growth may be on the verge of decline, contributing to economic instability.