Millions of Americans have received a pay cut since Biden took office

foxbusiness.com:

UBS managing director and senior portfolio manager Jason Katz analyzes the October CPI report that shows inflation slowing more than expected on 'Varney & Co.'

Millions of Americans have received a pay cut over the past two years thanks to high inflation, a blow to President Biden as he attempts to center his re-election campaign around «Bidenomics.»  

The Labor Department reported Tuesday that average hourly earnings for all employees was $11.05 in October – a 3.32% decline from the $11.43 figure in January 2021, when Biden took office.

By that measure, the typical U.S. worker is actually worse off today than two years ago, even though nominal wages are rising at the fastest pace in years. 

That's because consumers are confronting stubbornly high inflation, which has quickly diminished their purchasing power. 

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Shoppers are seen in a Kroger supermarket on Oct. 14, 2022, in Atlanta, Georgia. ((Photo by Elijah Nouvelage / AFP) (Photo by ELIJAH NOUVELAGE/AFP via Getty Images) / Getty Images)

The government said Tuesday that the consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rents, was unchanged in October from the previous month. Prices climbed 3.2% on an annual basis. 

But when compared with January 2021, shortly before the inflation crisis began, prices remain up a stunning 17.62%. 

Inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily impacted by price fluctuations. 

INFLATION RISES