Latest / Wages and Prices with Fexingo: Cost of Living, Pay Raises, and Workers' Purchasing Power
The Service Wage Trap in 2026
In August 2026, average hourly earnings for private workers hit thirty seven dollars and eighty cents, yet the cost of living feels heavier than ever. This episode explores why wages are rising but purchasing power is stagnating for the service sector. We look at the divergence between goods inflation, which has cooled, and services inflation, which remains sticky around three percent core CPI. Lucas and Luna dissect how the employment cost index suggests employers are paying more for talent, but productivity isn't keeping pace. The result is a wage-price squeeze that hits middle-income…
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