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flag Inflation rise reduces real wages, reversing recent gains in workers' purchasing power.

flag Inflation has risen again, erasing recent gains in real wages and ending a brief period of improved purchasing power for American workers. flag Despite earlier increases in nominal wages, higher prices for goods and services have outpaced income growth, reducing the actual value of earnings. flag The latest data shows that workers are now earning less in real terms compared to last year, marking a reversal in the trend of rising real wages seen in 2024 and early 2025.

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