We got the latest inflation numbers — the Consumer Price Index — for October this morning. CPI increased 0.2% month over month, and prices were 2.6% higher in October than they were a year ago. For the most part, the pace of price gains has been gradually slowing since inflation hit a pandemic-era peak of 9% in June 2022.

But wages have also been increasing at a pretty steady pace. Average hourly earnings growth surpassed the rate of price growth back in May 2023, which means Americans’ real earnings have been improving. READ MORE