Inflation Dampens Household Purchasing Power Despite Brighter 2026 Outlook

Flat bank balances and slowing wage growth signal mounting pressure on consumers despite a more upbeat 2026 economic forecast.

U.S. dollar bills in Washington on Nov. 13, 2025. Madalina Kilroy/The Epoch Times

Real income growth for U.S. households remained unusually weak heading into the holiday season, even as economists upgraded their outlook for next year’s economic expansion, according to a new report from the JPMorganChase Institute.

Median real income growth for Americans aged 25 to 54 slowed to 1.6 percent in October, a pace comparable to the soft labor market recovery in the 2010s following the Great Recession, the Nov. 25 analysis shows.