More than half of Americans are reporting their incomes are not keeping up with the inflation-fueled increase in household expenses.
According to a Bankrate.com survey, 48% of Americans received raises in the past 12 months (including 8% that got both a pay raise and a better paying job) and 21% got a better
paying job. But 55% said their income is not keeping pace with inflation, with 39% saying the increase had kept pace or exceeded the rise in household expenses.
“Inflation that has run at the highest levels in more than four decades has stripped buying power away from households of all walks of life,” said Greg McBride, chief financial analyst
for Bankrate.com. “Even half of those receiving a pay raise, getting a promotion, or taking on new responsibilities said that higher pay falls short of the increase in household expenses.”
Of those who received a pay increase, 36% received a performance-based increase, 31% received a cost-of-living increase, 16% got a promotion or new job responsibilities, 10% cited some other reason (such as labor contract or seniority-based), and 7% did not provide a reason for their wage hike.
“More than half of workers receiving raises attributed it to a performance-based increase, a
promotion or new responsibilities,” McBride added. “Fewer than one-third, just 31%, said it was a cost-of-living increase. The cost-of-living increase continues to be the exception rather than the rule.”
The survey polled 2,458 adults online from Aug. 17-19.
