Your Money Minute Prices Higher Than Pay Raises 9/17/26
Sep 17, 2026
Are your pay raises keeping up with rising prices? This quick money briefing examines inflation, slowing wage growth, shrinking purchasing power, and forecasts for average salary increases that may fall short of higher costs.
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Compare Your Raise With Inflation
- Compare your annual raise with inflation to see whether your purchasing power is growing or shrinking.
- Jessica Ettinger says a raise below roughly 3.5% generally fails to keep pace with prices.
Judge Raises By Real Buying Power
- Track inflation alongside your salary instead of judging a raise by its percentage alone.
- If your increase falls short, recognize that your real income is declining and adjust your budget accordingly.
A Raise Can Still Be A Pay Cut
- Inflation around 3.5% creates a higher minimum raise needed to maintain purchasing power.
- A seemingly positive salary increase can still represent a real pay cut when prices rise faster.