REAL WAGES FELL 1.3% UNDER BIDEN ADMIN, PRICES ROSE 21.5%

Key Points:

  • Real average hourly earnings are hourly earnings adjusted for inflation. They are one measure of real wages, which represent the economic return to work.
  • Despite average hourly earnings trending up, wages are still down after adjusting for inflation.
  • The final Consumer Price Index (CPI) reading under Biden rose 0.5% in January from December and is up 3.0% in the last year.
  • Real average hourly earnings have fallen from $36.35 in January 2021 to $35.87 in January 2025, a 1.4% decline.
  • Overall, prices increased 21.5% since Biden and Harris took office in January 2021.
Source BLS