Summary

• When the BLS released its May employment report earlier this month, one component of the report that raised concerns was the measure of average hourly earnings.
• The real problem became more apparent a few days later when the BLS released its May report on price inflation. The new report on prices showed that the year-over-year increase in the CPI was 4.3 percent.
• Average real earnings fell by 0.69 percent year over year for May. May also was the second month in a row during which earnings fell, year over year.
• The New York Federal Reserve last month warned that CPI inflation - driven partly by rising food prices - will continue to put pressure on consumers.

By Ryan McMaken

When the BLS released its May employment report earlier this month, one component of the report that raised concerns was the measure of average hourly earnings. In May, the year-over-year change for earnings was