Keystone Today

Inflation continues to be a major concern in the United States with inflation at an annual rate of 8.3%, creating a considerable effect on households in Pennsylvania.

Washington Post columnist Heather Long, who is from Pennsylvania, tweeted Tuesday, “Average hourly pay in America 'adjusted for inflation' is minus 2.8% in the past year. Inflation has been eating up wage gains since April 2021 and shows little sign of significant easing.”

The Bureau of Labor Statistics (BLS) reported Tuesday that the Consumer Price Index data for the past year ending in August, which showed an 8.3% all-items increase. This is a 0.1% rise from last month. Largest contributors are shelter, food and medical care.

"The 8.3% inflation means your salary is about 1/12 gone,” tweeted former Arkansas Gov. Mike Huckabee and a onetime GOP presidential candidate. “If you make same pay as last year, higher prices robbed you a full month of your pay. If you buy same things this year as last year, inflation is trying to pay for it with 11 months’ worth of pay instead of 12 months’ worth.”

With a 3.4% wage inflation for August 2022, the average Pennsylvania household income is down $3,402 annually. Zippia posted in April that the average income in Pennsylvania was $100,056, but with the recent wage inflation, that number will drop to $96,654.

The BLS also reported that real average hourly earnings for all employees dropped 2.8%% from August 2021 to August 2022. The change in real average hourly earnings combined with a decrease of 0.6% in the average workweek led to a 3.4% decrease in the real average weekly earnings over the course of a year. 

Food prices increased 0.8% in August, and those costs are up 11.4% over 12 months. Take-home groceries went up 0.7% over the past month and 13.5% over the last year. The index for shelter increased 0.7% in the last month and 6.2% over a year. Medical care rose 0.7% in August after increasing 0.4% in July.