evidence: Average wages have surpassed inflation for 12 straight months Average hourly wage growth has exceeded inflation for 12 straight months, according to new Bureau of Labor Statistics data released this morning. This real (or inflation-adjusted) wage growth is a key indicator of how well the average worker’s wage can improve their standard of living. As inflation continues to normalize, I’m optimistic more workers will experience real gains in their purchasing power. [...] While nominal wage growth is an important indicator for Fed policymakers to measure signs of labor market slack and inflationary pressures (and these remain relatively muted), real wage growth is what matters for workers’ living standards. On average, the data are clear: wages have been beating inflation for 12 months now.