The Brief

Wages still trail inflation, but the gap has narrowed to 1.2 points from a peak of 4.8 in 2022.

Since 2021, prices are up 22.7% vs. a 21.5% rise in wages.

Only a few sectors—retail, health care, hospitality, and food services—have kept ahead of inflation.

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 w

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