Inflation inflicting pain, as wages fail to keep pace with price hikes

There is no such thing as an economic free lunch. Currency devaluation, a form of ongoing default, carries the direct consequence of inflation. Standard of livings decline when wages and benefits fail to keep pace with inflation. Expect this trend to continue for years as currency devaluation remains the only viable political option.

Headline: Inflation inflicting pain, as wages fail to keep pace with price hikes

Inflation is back, with higher prices for food and fuel hammering American consumers, and this time it really hurts.

Previous bouts of inflation have usually meant a wage-price spiral, as pay and prices chase each other ever upward. But now paychecks are falling further and further behind. In the past three months, consumer prices have been rising at a 5.7 percent annual rate while average weekly wages have barely budged, increasing at an annual rate of only 1.3 percent.

Source: washingtonpost.com