Inflation Outpacing US Wages, Creating Worst Pay Drop in 25 Years

A woman shops for groceries at a supermarket in Monterey Park, Calif., on Oct. 19, 2022. Frederic J. Brown/AFP via Getty Images

Residents in the United States have less to celebrate on payday as inflation-adjusted wages endure the harshest pay cut in a quarter century, according to the Federal Reserve Bank of Dallas.

The bank’s report revealed that the median decline in real wages was a little more than 8.5 percent for most of the U.S. workforce in the past 12 months—“the most severe faced by employed workers over the past 25 years.”