U.S. Wage Growth Trails Inflation As Consumer Prices Rise 3.4% In August

According to CNBC, U.S. consumer prices rose 3.4% in August from a year earlier, while average hourly earnings increased 3.1% over the same period, leaving real average hourly earnings down 0.1% from July and 0.3% from a year earlier. Heather Long, chief economist at Navy Federal Credit Union, said a substantial number of Americans are worse off because incomes are not keeping pace with price increases, and she said inflation is erasing wage gains as energy costs climb. Long said gasoline prices rose 3.9% in August and diesel reached $6 per gallon on Friday for the first time amid fuel supply disruptions tied to wars in Iran and Ukraine. She added that households are shifting spending toward warehouses and discount stores, with Navy Federal's internal data showing more members shopping at Costco, Aldi and similar retailers.