Katharina Buczek
In fact, if you account for the rising cost of living, the wages and salaries gap has actually increased by 3.5%. Jason Furman, a Harvard University economics professor, detailed how now, Americans are left playing catch up.
“They are falling behind– not because wage growth is slowing, but because price growth is so high. And that’s a worrisome sign for the future,” Furman said in an interview with CNN.
Still, some economists believe that citizens just need to hold on and look forward to 2024– when inflation rates are expected to slow to a target rate of 2%.
Others are not as optimistic but are still forecasting inflation to hover between 3% and 4% over the next few decades– which is still elevated but at least half of what Americans are experiencing right now.
So, it is not yet time to worry about extreme cases of hyperinflation occurring in the United States as it has in Germany and Venezuela in the past.
Instead, financial advisors have instructed citizens to sit tight and take a few crucial steps.
First, continue to be wary of overspending and prioritize living within your means. Second, ensure that you have an emergency fund equipped to cover three to six months of living expenses in the event of an emergency. And finally, keep in mind that economic cycles are bound to happen.
To view the latest Consumer Price Index data, visit the link here. Or, to view the latest Employment Cost Index Data Summary, visit the link here.
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