Latest / Wages and Prices with Fexingo: Cost of Living, Pay Raises, and Workers' Purchasing Power
How the Wage-Price Spiral Actually Works Today
Lucas and Luna dive into the current wage-price dynamic using fresh data from May 2026. Average hourly earnings are up to $37.40, but CPI is at 332.4 and consumer sentiment hit a record low last week. They explore why the classic 'wage-price spiral' hasn't fully materialized, despite rising labor costs. The episode focuses on the role of productivity and corporate margins as a buffer, using recent Federal Reserve research and real-world examples from the retail and manufacturing sectors. Lucas explains how unit labor costs are climbing faster than prices in some industries…
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