Real earnings outpacing inflation in U.S.

Figures released by the U.S. Bureau of Labor Statistics in August show that earnings have increased faster than inflation in recent months.

The bureau’s “real earnings” numbers, which factor inflation, increased 0.4 percent from June to July, when seasonally adjusted. This result stems from a 0.3-percent increase in average hourly earnings combined with essentially no change in the Consumer Price Index Real average weekly earnings increased 0.6 percent over the month due to the increase in real average hourly earnings combined with a 0.3-percent increase in the average workweek.

Looking further, real average hourly earnings increased 1.7 percent, seasonally adjusted, from July 2015 to July 2016. This increase in real average hourly earnings combined with a 0.3-percent decrease in the average workweek resulted in a 1.4-percent increase in real average weekly earnings over this period.

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