Are wages keeping up with the cost of living?

Real wages fell 0.8% — lagging inflation.

-0.8%

Real wage growth

February 2026

For wages to improve living standards, they need to grow faster than prices. When inflation exceeded wage growth in 2022-2023, workers experienced real-terms pay cuts.

Wage growth vs inflation

When inflation spiked in 2022, wages couldn't keep up — workers experienced real-terms pay cuts even as nominal wages rose. The gap has narrowed as inflation cooled.