It has been three years since Bidenflation sent costs soaring, and the effects are still hovering over the economy. The latest Bankrate survey finds 62% of American workers say their pay is not keeping up with their cost of living. That is the highest number in the four years of the survey, but similar to the share of the last four years, which has remained between 55% and 62%.
Compounding the issue of stubborn inflation is job growth is slowing down from the hyper-activity of recent years, when demand for employees had people job-jumping and demanding more pay. Still, a closer look at the stats shows actual wage growth (3.7% in the past year) continues to outpace the rate of inflation (2.9%). "The numbers show you are making more than the rate of inflation," says Richard Rosso, certified financial planner. "But you are influenced by the news and other factors that change your perception of where inflation is at."
While some of Americans' economic concerns can be chalked up to misperceptions, others are legitimate. "There are still some areas of the market, outside of any president's control, where inflation is going up," says Rosso. "Like homeowners insurance, automobile insurance, cattle and beef prices."
The bottom line, according to Rosso, is that while inflation has improved in the last year, it remains well above pre-pandemic levels. And many people are still feeling that in their own budget. "Based on what you make, you are likely above the current rate of inflation," says Rosso. "But I'm still trying to catch up from Biden's inflation...that inflation still lives with us like a ghost."
"We can't get rid of it, because it's now a part of the whole entire process when you go to the store," he continues. "The prices that went up are not going back down."
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