Inflation drop leads to higher wages for Americans

Americans are finally experiencing a raise as wage growth outpaces price growth for the first time since March 2021. In June, real average hourly earnings increased by 1.2% on a year-over-year basis, compared to a decline of 3.2% in June 2022. For nonsupervisory workers, wage growth was even greater at 2.2% year over year. With inflation falling to 3% in June, the smallest increase in over a year, and gas prices and food inflation also decreasing, wages are stretching further. While these gains are relative and inflation-adjusted wages have only climbed slightly since 2019-2020, economists believe the recent wage growth is sustainable and could lead to higher living standards.