Real Hourly Earnings Slipped in August as Consumer Prices Outpaced Pay

The Pay Report

Real average hourly earnings for U.S. employees fell 0.1% from July to August after consumer prices rose faster than average hourly pay, the Bureau of Labor Statistics reported September 11.

Average hourly earnings increased 0.3% before inflation, while the CPI-U increased 0.4%. Over the year, real average hourly earnings were down 0.3%. Real average weekly earnings rose 0.2% in August because the average workweek increased.

The distinction between nominal and real pay is critical. Workers can receive higher dollar wages while purchasing power still falls if prices rise faster. Employers evaluating compensation pressure should likewise separate wage growth from the real income employees experience.

Source: U.S. Bureau of Labor Statistics, Real Earnings — August 2026, released September 11, 2026. https://www.bls.gov/news.release/realer.nr0.htm

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