The Raise You Got vs the Prices You Missed

Episode 35 of Wages and Prices digs into a quiet pattern in the May 2026 data: average hourly earnings are up to $37.50, but the broadest CPI hit 332.4 in April. Lucas and Luna walk through why the headline wage number can feel disconnected from what a paycheque actually buys, using the latest employment cost index and core inflation figures. They explore how the gap between what employers report paying and what workers feel matters more than ever, especially as long-term unemployment climbs and the Fed watches wage-driven services inflation. The conversation closes with a look at whether the Fed’s preferred measure — core PCE, sitting at 129.6 — tells a truer story than CPI for most households. #WagesAndPrices #Economics #WageGrowth #Inflation #CPI #CorePCE #EmploymentCostIndex #AverageHourlyEarnings #RealWages #FedPolicy #ServicesInflation #LongTermUnemployment #MayJobsReport #PaycheckReality #PriceIndex #CostOfLiving #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo