Bankrate: US Wages Still Fall 1.2 Points Short of Inflation Since 2021
A viral social-media post claims that “middle- and low-income wages are trailing inflation under Trump … prices are going up faster than wages,” casting the situation as a crushing “inflation crisis.” Recent economic data show this claim is partially true — but more nuanced.
A new analysis from Bankrate shows that since January 2021, inflation has risen roughly 22.7%, while wages have increased only 21.5%. That translates to a net loss in purchasing power for many U.S. workers — a shortfall of 1.2 percentage points. The lag was worse in 2022, when inflation surged, but it has since narrowed.
On the other hand, data from the second half of 2024 through mid-2025 show improvement. From July 2024 to July 2025, nominal weekly wages rose 4.2%, outpacing a 2.7% rise in consumer prices. Among many workers, that means real take-home pay is inching up. According to federally compiled data, real average weekly earnings rose about 1.4% over that period.
Still, not everyone shares in those gains. A recent labor-market survey found only 57% of workers saw pay increases that outpaced inflation — leaving 43% effectively earning less in terms of purchasing power. Low- and middle-income households remain especially vulnerable.
In short: yes — many Americans are still grappling with inflation eroding wage gains, and overall cumulative wage growth hasn’t made up for the post-pandemic price surge. But over the past year, wage growth has accelerated faster than inflation — giving some workers a modest recovery in real income. Whether that uptick is enough to offset long-term losses depends heavily on income level, occupation, and how inflation evolves next.
Follow The Coffman Chronicle on NewsBreak for daily breaking political coverage.