What an inflation surge means for American workers’ jobs and salaries

American workers are about to feel the squeeze of the sharpest inflation surge in years — and human resources leaders may be the ones left managing the fallout.

The Survey of Professional Forecasters, a blue-ribbon panel polled quarterly by the Federal Reserve Bank of Philadelphia, now projects consumer price inflation will reach 6% in the second quarter — more than double its estimate of 2.7% just three months ago. The dramatic revision follows a string of troubling economic data, including a producer price index rate of 6% in April, the highest since December 2022, and headline consumer prices running at a 3.8% annual rate, the steepest increase in nearly three years. READ MORE

Inflation eroded pay by 1.7% over the past year

High inflation overshadowed a big increase in wages over the past year, amounting to a nearly 2% smaller paycheck for the average worker, according to federal data published Thursday.

Employers have raised wages at about the fastest rate in 15 years, as they compete for talent amid record job openings and quit levels. But consumer prices for goods and services are rising at their fastest annual pace in four decades, eroding those gains for many Americans. READ MORE