Wages are up but inflation causes pay cut

(CNN) - American paychecks are climbing faster than ever, but thanks to inflation, it feels like workers all got handed a pay cut.

Moody’s analytics says the average U.S. consumer is now spending about $460 more per month compared to the amount paid for the same services at this time last year.

Analysts say, although many workers are seeing their wages rise at a pace not seen in decades, consumer prices have basically nullified those gains.

Many Americans are also keeping close watch on their wallets.

A study from the University of Michigan says real disposable income per capita may soon fall to the country’s largest annual decline since 1932.

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