Recent economic data show that cumulative wage gains have finally surpassed the sharp rise in consumer prices that has plagued the economy for several years. This milestone marks the first time since the inflation surge began that American households have experienced real income growth after accounting for higher prices.
The crossover point comes after nearly two years of persistent inflation that eroded purchasing power for millions of Americans. Workers have seen their paychecks stretch further in recent months as wage growth continues, while inflation has gradually cooled from its peak levels.
