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    Comparison

    CPI vs Average Hourly Earnings

    Real wage growth — wage gains minus inflation — is what actually determines whether households are getting ahead. Compare nominal wage growth and CPI inflation directly.

    CPIAUCSL
    CPI
    330.29 · Mar 2026
    vs
    CES0500000003
    Avg Hourly Earnings
    37.38 · Mar 2026
    Year-over-Year %
    Feb 17Dec 17Nov 18Oct 19Sep 20Jul 21Jun 22May 23Apr 24Mar 25Mar 260.0%3.0%6.0%9.0%12.0%
    • CPI
    • Avg Hourly Earnings

    Nominal wage growth measures how fast paychecks are rising. CPI measures how fast prices are rising. Subtract one from the other and you get real wage growth — the part of wage gains that's actually available to spend.

    From 2021 through mid-2023, CPI inflation ran above nominal wage growth for the first sustained stretch in decades. Real wages were falling: workers got raises, but prices rose faster. From mid-2023 onward the relationship flipped as inflation cooled faster than wage growth — real wages have grown since, partially recovering the purchasing power lost in the prior two years.

    The BLS publishes several wage measures. Average hourly earnings (from the establishment survey) is the most common monthly gauge; the Employment Cost Index and Atlanta Fed's Wage Growth Tracker offer complementary views that control for composition effects.

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