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Most Americans say that inflation is outpacing any increases in wages

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Posted at 11:26 AM, Sep 27, 2022
and last updated 2022-09-27 14:28:53-04

According to a study released Tuesday by Bank of America, 71% of U.S. workers say their income has not kept pace with expenses.

The result is that most Americans no longer feel they are financially secure. According to Bank of America, 44% say they are financially secure, down from 57% in February.

According to federal data, the median hourly wage increased 5.2% in the last year from $30.76 to $32.36. During the same time, the Consumer Price Index increased by 8.3%.

The median weekly earnings were $1,067 a year ago. To keep up with inflation, weekly incomes should be $1,155. Instead, they are $1,107.

Essentially, Americans are earning $48 less a week than a year ago. Over the course of a year, that means our buying power has dropped $2,525, according to federal data.

The loss of real income means nearly half of U.S. employees have taken action to combat financial strain. Bank of America’s survey found that 21% have dipped into emergency savings, 21% are working additional hours, 20% are looking for higher-paying jobs and 6% have taken money from their retirement accounts.

Despite recent trends, 56% are confident in their financial well-being in two or three years.