Average Hourly Earnings Growth vs Consumer Price Index (CPI) — Year-over-Year
Average Hourly Earnings Growth is currently 3.8% (down -0.2%). Consumer Price Index (CPI) — Year-over-Year is currently 2.8% (down -0.1%).
| Metric | Average Hourly Earnings Growth | Consumer Price Index (CPI) — Year-over-Year |
|---|---|---|
| Current value | 3.8% | 2.8% |
| Previous reading | 4% | 2.9% |
| Change | -0.2% | -0.1% |
| Trend | down | down |
| Frequency | Monthly | Monthly |
| Source | Bureau of Labor Statistics | Bureau of Labor Statistics |
| Last updated | 2026-04-04 | 2026-03-12 |
| Category | employment | inflation |
What Average Hourly Earnings Growth measures
Average hourly earnings measures the year-over-year percentage change in wages for all private-sector employees. It is a key indicator of labor cost pressures and consumer spending power.
Wage growth at 3.8% year-over-year outpaces current inflation, meaning workers are gaining real purchasing power. For executives, this signals continued pressure on labor budgets — compensation packages must grow to retain talent. However, wage growth moderating from 4%+ suggests the worst of the post-pandemic wage spiral may be easing.
What Consumer Price Index (CPI) — Year-over-Year measures
The Consumer Price Index measures the average change over time in the prices paid by urban consumers for a basket of goods and services. The year-over-year change is the most commonly cited measure of inflation.
Inflation at 2.8% remains above the Federal Reserve's 2% target but has moderated significantly from the 2022 peak of 9.1%. For executives, this means input costs are still rising faster than the Fed's comfort zone, but the pricing environment is stabilizing. Companies with strong pricing power can pass through cost increases; those in competitive markets face margin pressure. The Fed is unlikely to cut rates aggressively until CPI moves closer to 2%.
Frequently asked
Average Hourly Earnings Growth is currently 3.8%, down -0.2% from the previous reading. Source: Bureau of Labor Statistics, updated monthly.
Consumer Price Index (CPI) — Year-over-Year is currently 2.8%, down -0.1% from the previous reading. Source: Bureau of Labor Statistics, updated monthly.
Wage growth at 3.8% year-over-year outpaces current inflation, meaning workers are gaining real purchasing power. For executives, this signals continued pressure on labor budgets — compensation packag Inflation at 2.8% remains above the Federal Reserve's 2% target but has moderated significantly from the 2022 peak of 9.1%. For executives, this means input costs are still rising faster than the Fed'