The Brief

NEW YORK - A new report reveals that wages still lag behind inflation following the pandemic-era price surge, though the gap is closing

According to Bankrate’s 2025 Wage to Inflation Index , this year’s figure is -1.2 percentage points, meaning prices have risen 1.2 points more than wages since early 2021.

Although the gap has narrowed compared with previous years, wage growth still has not fully offset the surge in prices.

By the numbers:

Since January 2021, inflation has climbed 22.7% compared with a 21.5% rise in wages, based on Bureau of Labor Statistics data for Q2 2025.

The gap peaked at 4.8 percentage points in Q2 2022 and has been narrowing since Q3 2022, according to Bankrate’s analysis.

Over the past year, progress has slowed as the labor market cools and infl

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