{
  "id": 7188597,
  "title": "Consumers Feel Strained as Inflation Surpasses Wage Growth",
  "url": "https://urgent.news/2026/09/13/consumers-feel-strained-as-inflation-surpasses-wage-growth",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-13T22:16:08.000Z",
  "source": {
    "name": "PYMNTS",
    "slug": "pymnts",
    "url": "https://www.pymnts.com/economy/2026/consumers-feel-strained-as-inflation-surpasses-wage-growth/"
  },
  "original_language": "en",
  "account": "American consumers are grappling with the strain of inflation outpacing wage growth, according to Heather Long, chief economist at Navy Federal Credit Union. Long told CNBC on September 13, \"A substantial number of Americans are worse off, their incomes are not keeping up with the price increases right now.\" Data from the U.S. Bureau of Labor Statistics revealed a 3.4% year-over-year increase in consumer prices in August, compared to a 3.1% rise in average hourly earnings during the same period. The real average hourly wage, adjusted for inflation, fell by 0.1% month-over-month and by 0.3% from August 2025. This gap between inflation and wage growth highlights the diminishing purchasing power of workers. Long explained, \"The basics are that inflation is wiping out wage gains.\" She noted that April marked a turning point after a long period where wage growth had consistently exceeded inflation. However, this progress was reversed when energy costs spiked this year. The pressure from inflation is particularly acute for recurring expenses, as consumers have limited room to cut back discretionary spending. The August inflation figures further strained the budgets of those living paycheck to paycheck, with 53% of them reducing spending on nonessential items like dining out, travel, and entertainment in the prior year. Meanwhile, 23% increased their nonessential spending, while 41% of paycheck-to-paycheck consumers on a tight budget and 27% of those who could comfortably pay their bills cut back on nonessential expenses. However, among those not living paycheck to paycheck, increases in nonessential spending exceeded reductions. Of those, 30% increased spending on nonessentials, and 27% reduced it. These figures suggest varying levels of spending capacity across households, with those having adequate savings and income still able to make discretionary purchases, while those already cutting nonessential expenses have fewer options left for further reduction.",
  "summary": "American consumers are facing added strain as inflation continues to outpace wage growth. “A substantial number of Americans are worse off, their incomes are not keeping up with the price increases right now,” Heather Long, chief economist at Navy Federal Credit Union, told CNBC in an interview Sunday (Sept. 13). Data released last week by […] The post Consumers Feel Strained as Inflation…",
  "key_points": [
    "Inflation outpaces wage growth, straining American consumers",
    "3.4% year-over-year increase in consumer prices in August",
    "53% of paycheck-to-paycheck consumers cut nonessential spending"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}