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Inflation rise reduces real wages, reversing recent gains in workers' purchasing power.
Inflation has risen again, erasing recent gains in real wages and ending a brief period of improved purchasing power for American workers.
Despite earlier increases in nominal wages, higher prices for goods and services have outpaced income growth, reducing the actual value of earnings.
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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El aumento de la inflación reduce los salarios reales, revirtiendo los recientes aumentos del poder adquisitivo de los trabajadores.