average earnings

A closely watched U.S. inflation reading eased in April for the first time this year while households boosted spending for the fourth straight month. Consumer spending rose by 0.9% in April and incomes increased 0.4%, the Commerce Department said Friday. But adjusted for inflation, disposable income was flat during the month, showing that wage increases are struggling to keep up with price rises. Inflation as measured by the personal-consumption expenditures price index rose 6.3% in April from a year earlier, down from…

Wage increases are settling at a historically high rate but aren’t keeping up with inflation, which has accelerated this year.The result is many workers are receiving big raises—and may still be struggling to pay for more expensive gasoline, groceries and rent. Strong wage growth can exacerbate inflationary pressures if employers decide to increase prices to offset raises. However, economists said the latest readings could be a sign that such pressures are starting to ease. The tight labor market boosted average hourly…