Nominal wages are now growing 1.7 percentage points faster than inflation

Incomes across multiple brackets are now making ground against cumulative costs. This shift follows a period where consumer prices rose slightly faster than wages overall since January 2021. Wage growth has outpaced inflation every month since June 2023. As of early 2026, nominal wages are growing roughly 1.7 percentage points faster than the current inflation rate. This trend persists despite the Federal Reserve keeping interest rates elevated to combat inflation.