Claim: Wages have been rising faster than consumer prices for several months, President Joe Biden said on Tuesday.
“And all of this means that, for the last several months, wages have gone up more than prices have gone up. Wages have gone up more than prices have gone up,” Biden said in remarks made at the White House.
Verdict: False.
Average hourly wages and average weekly wages rose in November by more than the rate inflation—but this was the first time they have done so significantly since August. In September and October, wages and inflation rose at almost the same pace.
Inflation-adjusted average hourly earnings rose by 0.5 percent, reflecting a 0.6 percent increase in hourly earnings and a 0.1 percent rise in the Consumer Price Index. The average workweek, however, contracted a bit, falling to 34.4 hours from 34.5 hours. So average weekly earnings were up just 0.2 percent after adjusting for inflation.
Compared with a year ago, both average hourly and average weekly wages are down quite a bit. Real average hourly wages have fallen 1.9 percent from 12 months ago, reflecting a 5.1 percent rise in unadjusted wages and a 7.1 percent rise in the price index. Real weekly wages are down three percent.
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