The Economic Times

US Workers paychecks lose buying power for first time since 2022: What is crushing middle-class Americans despite rising wages and bigger paychecks running higher?

US inflation rose to 3.8% in April. That is the highest level since May 2023. American workers are now losing buying power again as rising prices move faster than paycheck growth. Real wages fell for the first time in three years. Gasoline prices surged 28.4%. Rent inflation accelerated sharply. Middle-class families now spend more on groceries, fuel, electricity, and housing despite earning bigger salaries. The inflation crisis is no longer just about higher prices. It is becoming a daily affordability shock across the US economy.