Wage Growth vs Inflation Tracker 2026
Tracking Real Purchasing Power Across Sectors, Education, & Income (2019 - Present)
Latest Real Wage Growth (YoY)
As of 2026-02-01
Cumulative Real Growth (Since 2019)
Total Private Sector
Highest Peak Real Growth
2020-04-01
Deepest Real Wage Loss
2022-06-01
Interactive Data Explorer
| Date ↕ | Category ↕ | Nominal Wage Growth (YoY) ↕ | CPI Inflation (YoY) ↕ | Real Wage Growth ↕ |
|---|
Methodology & Data Sources
Our Wage Growth vs Inflation Tracker utilizes strictly publicly available, verifiable data. All data is sourced directly from the Federal Reserve Economic Data (FRED) database, maintained by the Federal Reserve Bank of St. Louis.
Metrics Tracked:
- Inflation: Consumer Price Index for All Urban Consumers: All Items (CPIAUCSL)
- Sectors: Average Hourly Earnings of All Employees for specific sectors (Total Private, Goods-Producing, Service-Providing, Leisure & Hospitality, Education & Health).
- Education Levels: Employed full time: Median usual weekly real earnings (Wage and salary workers).
- Income Percentiles: Employed full time: Usual weekly nominal earnings based on quartiles and deciles.
Calculation: Real Wage Growth is calculated on a Year-over-Year (YoY) basis. We compute the percentage change in nominal wages from exactly one year prior, and subtract the YoY percentage change in the CPI for the corresponding period (monthly for sectors, quarterly for education and income demographics).
Frequently Asked Questions
What is real wage growth?
Real wage growth is the increase in wages adjusted for inflation. It is calculated by subtracting the inflation rate (CPI) from the nominal wage growth rate. A positive number means your purchasing power increased.
Are wages keeping up with inflation in 2026?
Currently, real wage growth is at a rate of 1.18% year-over-year. You can check the main chart to see the historical trend since 2019.
How is the wage growth vs inflation tracker calculated?
The tracker uses data from the Federal Reserve Economic Data (FRED), comparing the Consumer Price Index (CPI) with Average Hourly Earnings across various sectors, income percentiles, and education levels to calculate real wage growth.
Which sectors or percentiles have the highest real wage growth?
Historically, sectors like Leisure & Hospitality, and lower income quartiles, have seen significant fluctuations. Our data table allows you to filter and sort real wage growth by specific sectors, education levels, and percentiles to see current leaders.
Why is my salary vs inflation comparison important?
Tracking your salary against inflation shows your actual purchasing power. If inflation outpaces your salary increases, your effective income decreases, meaning you can buy less with the money you earn.
Cite This Page
Westmount Fundamentals. "Wage Growth vs Inflation Tracker 2026." westmountfundamentals.com/wage-growth-vs-inflation-2026, 2026.