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Low Inflation Meets Weak Wage Gains

Wage gains have been weak in recent months, but inflation has been practically non-existent –…

  • December 7, 2020

Wage gains have been weak in recent months, but inflation has been practically non-existent – at least according to the government.

The U.S. Bureau of Labor Statistics reports that Real average hourly earnings for all employees increased 0.1 percent from September to October, seasonally adjusted.

This result stems from an increase of 0.1 percent in average hourly earnings combined with no change in the Consumer Price Index for All Urban Consumers (CPI-U), a main gauge of consumer price inflation.

Real average weekly earnings increased 0.1 percent over the month due to the change in real average hourly earnings combined with no change in the average workweek.

Real average hourly earnings increased 3.2 percent, seasonally adjusted, from October 2019 to October 2020.

The change in real average hourly earnings combined with an increase of 1.2 percent in the average workweek resulted in a 4.4-percent increase in real average weekly earnings over this period.