Latest / Wages and Prices with Fexingo: Cost of Living, Pay Raises, and Workers' Purchasing Power
Why Your Raise Feels Like a Lateral Move in This Economy
Episode 16 of Wages and Prices looks at the psychology of wage growth. With average hourly earnings at $37.40 and the CPI at 332.4, nominal pay is up over 4 percent year-over-year. Yet consumer sentiment hit a record low in May 2026, and 10-year breakeven inflation is at 2.39 percent. Lucas and Luna explore why workers feel stuck even as their paychecks technically grow, drawing on behavioral economics concepts like money illusion, reference points, and the distinction between real and perceived purchasing power. They discuss the disconnect between hard data and lived experience, anchored in…
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