"When discussing affordability, it is important to note that while the CPI price level has increased 26% since 2019, wages have increased 30%,"
"I'm less convinced about this K-shaped recovery than other people are, Everyone wants prices to be 25% lower. Nobody wants their wages to be 25% lower."
National wages have increased faster than consumer prices since 2019, with wages up about 30% versus a 26% rise in the CPI. Strong wage growth and a 4.3% GDP expansion last quarter indicate robust economic momentum. Some economists argue rising incomes weaken the narrative of a strictly K-shaped economy, in which only the wealthy gain. Gas prices are at their lowest all year, yet consumer confidence has dropped to its lowest level since April and many Americans feel pessimistic about their finances. These mixed signals help explain persistent affordability worries despite measurable income gains.
Read at Fortune
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