The year 2022 ended with U.S. workers’ average weekly wages having risen 3%, and the still-lowball CPI up 6.5%. So despite the financial sector’s euphoria over the December 0.1% drop in prices in the CPI, and the hyping earlier in the year of $15 minimum wages and supposed big salary increases being commanded by American workers, real wages took a plunge from January to December.
Inflation has indeed reversed itself for gasoline, used cars and trucks, computers, beef and some other items which are now down in price for the year. But at the same time fuel oil and diesel fuel cost 41% more, food at home almost 12% more, average rent was still underestimated but rose 11%, utility costs were 19% higher, public transportation costs 19% higher, electricity cost 14.3% more on average, and healthcare 6% more. These are big parts of a household budget, and this is still big inflation in an economy in which large layoffs are hitting relatively higher-paid workers.
