San Francisco (CNN Business) American workers have seen their wages climb faster than at any time since the mid-1980s. Every time inflation ticks up, it takes a bite out of workers' pay and chews away at their bank accounts. "The causality is running from inflation to wages, not from wages to inflation," he said. "You cannot simply remove major wheat production, major food oil production, major fertilizer production, major oil production, major natural gas production, major production of [semiconductor] chips used in automobiles and think you're not going to get inflation," he said. "But for people who live paycheck-to-paycheck, that decline in real disposable income ... that's much more distressing than economists and policymakers realize."

Source: CNN June 18, 2022 01:57 UTC