The Kobeissi Letter|Oct 05, 2026 23:01
American wages are not keeping up with inflation.
US average hourly earnings adjusted for inflation fell -0.3% YoY in September, marking the 5th consecutive decline in real wages.
This follows a -0.2% YoY decrease in August, -0.3% in July, and -0.8% in June, the largest decline since May 2023.
This marks a sharp deterioration from +1.3% YoY growth in real wages recorded in February.
This all comes as US CPI inflation has remained above +3.0% for 6 consecutive months, the longest such streak since mid-2024.
Meanwhile, in nominal terms, average hourly earnings rose +3.0% YoY in September, their slowest growth since May 2021.
Nominal wage growth has been in a downtrend since March 2025, when earnings grew +4.2% YoY.
Inflation is eroding the spending power of Americans.
Share To
Timeline
HotFlash
APP
X
Telegram
CopyLink