[Asia Economy Reporter Song Seung-seop] A survey has revealed that more than half of wage workers in the United States are experiencing a decrease in real wages due to inflation (rising prices).
According to major foreign media on the 4th (local time), the Federal Reserve Bank of Dallas reported that 53.4% of workers had wage increases lower than the 8.6% rise in the urban Consumer Price Index (CPI) from the second quarter of last year to the second quarter of this year. The researchers who prepared the report explained, "The tight labor market has strengthened the trend of wage increases," but "the majority of workers' wages (increases) lagged behind inflation."
Over the past 25 years, the median decline in real wages in the U.S. has typically ranged between 5.7% and 6.8%, with a median of 6.5%. However, the report states that due to unprecedented inflation, the median decline in real wages reached 8.6%.
Currently, the U.S. Federal Reserve (Fed) took a giant step (a 0.75 percentage point increase in the benchmark interest rate) last month to curb inflation, which has surged to the highest level in 40 years. This is the first time the Fed has decided on three consecutive giant steps. Furthermore, the Fed projects that the benchmark interest rate will reach 4.4% by the end of this year.
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