Your Money Minute Not Keeping Up With Inflation 9/8/25
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Sep 8, 2025 Explore the rising inflation trend hitting approximately 3% and its effects on wages and purchasing power. Discover expert insights on how this increase influences real incomes and the broader economy. Learn how inflation impacts your financial decisions and what it means for your wallet in today’s climate.
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Wage Gains Lag Inflation
- Inflation is roughly back up to 3%, so typical 3% raises only barely match price growth.
- Real, after-tax household incomes are growing near 1% annually, below inflation.
PCE Shows Broader Inflation
- The PCE tracks prices for 178 consumer items and shows inflation breadth.
- A growing share of components now exceed 3% price growth, signaling broadening inflation.
Core PCE Could Keep Rising
- Core PCE has crept higher over recent months and may continue rising through year-end.
- If inflation keeps moving the wrong way, many households could fall behind in purchasing power.