At a glance
August inflation data showed stable headline and core measures, but workers' wages continued to lag price increases. The mismatch squeezed household purchasing power and consumer confidence.
August inflation data showed stable headline and core measures—technically good news for inflation fighting. But workers' wages continued to lag behind price increases, squeezing household purchasing power and consumer confidence.
Stable inflation isn't the same as stable living standards. If prices hold steady but wages don't keep pace, workers are still losing ground month by month. Consumer confidence dropping despite "steady" inflation suggests people see through the headline numbers to their actual financial reality: they can afford less than they could a year ago, even if the rate of price increases has slowed.
Citation trail
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