Mark A LemleyGreat news: wage increases have outpaced inflation over the past five years. The result, as the nonpartisan Congressional Budget Office shows, is that “for all income groups…the portion of household income required to purchase the same bundle of goods and services declined.” Increased purchasing power net of inflation ranges from 2 to 6.3%, but all income groups benefited.
https://www.cbo.gov/publication/60166
https://www.cbo.gov/publication/60166
An Update About How Inflation Has Affected Households at Different Income Levels Since 2019
CBO focused on households’ consumption of a bundle of typical goods and services from 2019 to compare purchasing power in 2019 with that in 2023. On average, purchasing power increased, but the effects of inflation varied by income group.
Philip Bump