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 Consumer Price Index (CPI) was unchanged in May from April and is up 3.3% in the last year.
- Real average hourly earnings have fallen from $35.71 in January 2021 to $34.91 in May 2024, a 2.2% decline.
- Overall, prices have increased 19.3% since Biden took office in January 2021.