{"id":2466,"date":"2026-08-12T15:40:59","date_gmt":"2026-08-12T15:40:59","guid":{"rendered":"https:\/\/modernhomejournals.com\/?p=2466"},"modified":"2026-08-12T15:40:59","modified_gmt":"2026-08-12T15:40:59","slug":"workers-wage-gains-have-been-erased-by-inflation","status":"publish","type":"post","link":"https:\/\/modernhomejournals.com\/?p=2466","title":{"rendered":"Workers\u2019 Wage Gains Have Been Erased by Inflation"},"content":{"rendered":"<div>\n<div>\n<\/div>\n<div>\n<p>Workers aren\u2019t reaping the rewards of higher wages, Bureau of Labor Statistics data released Wednesday shows.<\/p><p>Read more <a href=\"https:\/\/modernhomejournals.com\/?p=2464\">N.C. Republicans Pick State Lawmaker to Replace Chuck Edwards on Ballot<\/a><\/p><p>Employees saw a 0.1% increase in average hourly earnings in July. Those gains were wiped out by a 0.1% increase in prices between June and July.<\/p>\n<p>The yearly inflation rate punched in at 3.4% in July. The price pressures can primarily be attributed to rising energy prices, which have soared as Iran strangles the world\u2019s supply of oil transiting out of the Strait of Hormuz as leverage in the war with the U.S.<\/p><p>Fuel prices alone surged 39.1% in the previous year, according to the report.<\/p>\n<section>\n<div>\n<h2>\n<span>Trending<\/span>\n<\/h2>\n<\/div>\n<div>\n<div>\n<ul>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-large\">\n<figure class=\"wp-block-image size-medium_large\"><img loading=\"lazy\" decoding=\"async\" alt=\"CJ Abrams home run AP - 26207748828108\" class=\"wp-image-2435\" height=\"512\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/3ce6859b1bef89a1c4d25712af32bf58-768x512.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/3ce6859b1bef89a1c4d25712af32bf58-768x512.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/3ce6859b1bef89a1c4d25712af32bf58-300x200.jpg 300w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/3ce6859b1bef89a1c4d25712af32bf58.jpg 1024w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n                      This Powerhouse Nats Offense Is a Terrible Thing to Waste\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-large\">\n<figure class=\"wp-block-image size-medium_large\"><img loading=\"lazy\" decoding=\"async\" alt=\"VA Clinic Florida\" class=\"wp-image-2463\" height=\"512\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/98bc0e1746ff5c14274843e9dfd23fe8-768x512.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/98bc0e1746ff5c14274843e9dfd23fe8-768x512.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/98bc0e1746ff5c14274843e9dfd23fe8-300x200.jpg 300w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/98bc0e1746ff5c14274843e9dfd23fe8.jpg 1024w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n                      The VA\u2019s Race to Shrink Its Backlog Is Leading to \u2018Egregious\u2019 Mistakes\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-large\">\n<figure class=\"wp-block-image size-medium_large\"><img loading=\"lazy\" decoding=\"async\" alt=\"Free DC Rally\" class=\"wp-image-2434\" height=\"512\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/0d231479564e81a92ca0646cf987dbe2-768x512.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/0d231479564e81a92ca0646cf987dbe2-768x512.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/0d231479564e81a92ca0646cf987dbe2-300x200.jpg 300w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/0d231479564e81a92ca0646cf987dbe2.jpg 1024w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n                      Inside a D.C. Courtroom Pushed to Its Limit Under Trump\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-large\">\n<figure class=\"wp-block-image size-medium_large\"><img loading=\"lazy\" decoding=\"async\" alt=\"034087E9-40F6-4854-A47A-19AB38F1B566_1_201_a-2 copy.jpg\" class=\"wp-image-2443\" height=\"432\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/9884e4e9d963b6b9836c6ff7aca8c4ab-768x432.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/9884e4e9d963b6b9836c6ff7aca8c4ab-768x432.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/9884e4e9d963b6b9836c6ff7aca8c4ab-300x169.jpg 300w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/9884e4e9d963b6b9836c6ff7aca8c4ab.jpg 1024w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n                      No ID, No Money, No Way Out: DHS Deports a Man to a Country He Doesn\u2019t Know\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n<p>High energy prices have trickled down to other sectors of the economy, including transportation, apparel and food, which hit a 3% annual inflation rate, deepening the United States\u2019 affordability problems ahead of the midterm elections, where cost of living has taken center stage.<\/p><p>Rising housing costs accounted for two-thirds of inflation changes from June to July.<\/p><p>Overall, real average hourly earnings \u2014 workers\u2019 average pay adjusted for inflation \u2014 declined 0.1% from June to July. Although workers are taking home a larger average paycheck than they did a year ago, they are effectively earning less in purchasing power, according to the report. Workers have slightly less purchasing power than they did when summer began.<\/p><p>Ben Zipperer, senior economist at the left-leaning Economic Policy Institute, said Wednesday\u2019s report was \u201cunambiguously bad news for workers.\u201d<\/p><p>Read more <a href=\"https:\/\/modernhomejournals.com\/?p=2460\">Ken Paxton Rakes In Data Center Donations as Texans Turn Against Industry<\/a><\/p>\n<p>\u201cThey\u2019re now taking a pay cut. A frozen job market has weakened their bargaining power and slowed nominal wage growth, and the higher inflation from Trump\u2019s Iran war has caused real wages to decline,\u201d Zipperer said in a text to NOTUS.<\/p><p>Workers have for years faced pressure in their pocketbooks from persistent inflation, which was kicked off by the pandemic and, most recently, compounded by the Iran war. The Trump administration\u2019s continuously changing tariff policies are also raising prices for consumers, as businesses pass on high import costs.<\/p><p>Consumers faced limited relief in July.<\/p><p>Energy prices dipped from June to July as the U.S. and Iran briefly recognized a fragile ceasefire agreement in mid-June. It was one of the few categories where prices declined; medical care, airfares and restaurant prices all rose.<\/p><p>Prolonged inflation is proving to be a thorn in the side of monetary policymakers looking to lower inflation to 2% in the long term. The Federal Reserve has punted interest rate changes at five consecutive meetings, in part due to uncertainty created by the conflict in the Middle East.<\/p><p>However, markets are increasingly becoming convinced that an interest rate increase is on the horizon, which would raise borrowing costs for businesses and consumers to slow spending and bring prices back down. The next interest rate decision will be in mid-September.<br\/><\/p><p>Read more <a href=\"https:\/\/modernhomejournals.com\/?p=2458\">Try, Try Again<\/a><\/p>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Energy prices have soared this year since the U.S. began its war with Iran.<\/p>\n","protected":false},"author":1,"featured_media":2465,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"class_list":["post-2466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Workers\u2019 Wage Gains Have Been Erased by Inflation - Modern Home Journals<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/modernhomejournals.com\/?p=2466\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Workers\u2019 Wage Gains Have Been Erased by Inflation - Modern Home Journals\" \/>\n<meta property=\"og:description\" content=\"Energy prices have soared this year since the U.S. began its war with Iran.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/modernhomejournals.com\/?p=2466\" \/>\n<meta property=\"og:site_name\" content=\"Modern Home Journals\" \/>\n<meta property=\"article:published_time\" content=\"2026-08-12T15:40:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/08\/3ce6859b1bef89a1c4d25712af32bf58.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"683\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#\\\/schema\\\/person\\\/533de239efc09a2ab59959cc1bff86d0\"},\"headline\":\"Workers\u2019 Wage Gains Have Been Erased by Inflation\",\"datePublished\":\"2026-08-12T15:40:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466\"},\"wordCount\":550,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/ebd6aa6e0dc98ab210d578c31d8e4016-scaled.jpg\",\"articleSection\":[\"Economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466\",\"url\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466\",\"name\":\"Workers\u2019 Wage Gains Have Been Erased by Inflation - Modern Home Journals\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/ebd6aa6e0dc98ab210d578c31d8e4016-scaled.jpg\",\"datePublished\":\"2026-08-12T15:40:59+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#\\\/schema\\\/person\\\/533de239efc09a2ab59959cc1bff86d0\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=2466#primaryimage\",\"url\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/ebd6aa6e0dc98ab210d578c31d8e4016-scaled.jpg\",\"contentUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/ebd6aa6e0dc98ab210d578c31d8e4016-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"Prices are displayed at a gas station Tuesday, April 7, 2026, in Orlando, Fla. 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