Wages are not keeping up with inflation. St. Cloud State University Economist King Banaian says the latest ADP report, which processes paychecks, shows:
“Wages went up 7.7% which sounds great until you realize that prices went up 8%. We are still losing a little right? The average worker is still losing something.”
Banaian believes consumer prices for goods will continue to rise for the next three to four months before leveling off.