14 Thursday Sep 2017
The BLS Real Earnings Report for August shows your average earnings decreased 0.3% for the month due to a rise in the CPI coupled with no wage gains.
Those who cheer declining purchasing power (notably Econoday), have even more good news to cheer about. Thanks to a 0.3% decline in the workweek, the average person is effectively taking home 0.6% less in August than July.
What could possibly be better other than even more inflation?
Current and Real Earnings, Private Nonfarm Employees
Production and supervisory workers did even worse.
No Disappointment
The good news keeps on piling up. To make less than 1% more than you did last year, you had to work more hours!
Let’s recap Econoday’s statement on the CPI earlier today.
“For the first time since February, core consumer prices did not come in below expectations, hitting the consensus with a modest but useful 0.2 percent gain. Despite lack of progress in the core, August results are not a disappointment and will definitely heat up support for the beginning of balance-sheet unwinding at next week’s FOMC.”
For more CPI details and mockery of Econoday, please see CPI Up 0.4% on Energy and Shelter: “Not a Disappointment”, Tiny Harvey Effect.
Mike “Mish” Shedlock
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.