11/06/2026
Government wage data rose this year. Prices rose faster, and the same reports show it.
The facts: The Employment Cost Index says wages and salaries for civilian workers rose 3.1% in the 12 months through September. Consumer prices (CPI-U) rose 3.7% over the same stretch. After prices, that ECI wage index fell 0.6%. Health benefit costs for private employers rose 6.4%. (Source: Bureau of Labor Statistics)
Jobs: This morning's report showed 165,000 jobs added in October, and unemployment at 4.1%. September payrolls were revised up to 60,000 from 29,000. Unemployment was 4.2% in September. (Source: BLS)
The Fed: On Oct 28 the Federal Reserve kept its key rate at 3.75% to 4%. Two of the 12 voters wanted to raise it. The next meeting is Dec 8 and 9. (Source: Federal Reserve)
Why it matters to you: When wages trail prices in the official indexes, the same pay covers less. If the Fed raises rates, car loans, credit cards, and new mortgages often cost more over time, while savings rates often move up too — not always right away, and not for every product.
My take: A raise that doesn't keep up with prices isn't really a raise. I don't envy the Fed. Raise rates and borrowing hurts. Wait, and prices keep climbing. What I'd like from everyone in Washington, new and old, is less blame and a plan to bring prices down.
Has your paycheck kept up with your bills this year?
