Inflation Down, Wages Up, Affordability Up

We received two very bullish economic statistics this week. First, in January average wages rose 0.4%. Second, consumer prices rose 0.2%. This means real wages rose in January following the trend throughout 2025.

This means that, for most Americans, affordability is rising, not falling.

The average American’s weekly paycheck now buys about 2% more than it did when Trump was inaugurated, after decreasing about 4% during the Biden years:

A line chart with the title, "real average weekly earnings, change since inauguration."

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