Gen Z’s lived experience through the pandemic and a period of high inflation meant that the economy was a top issue.

The CBO data show purchasing power rising across all income groups, but the numbers reflect averages, and individuals’ experiences vary.

Average pay raises last year slightly outpaced inflation but the price rises of previous years are still hurting some.

And that would mean your paycheck’s purchasing power would be getting a boost relative to inflation.

Wages are rising faster than prices. So on average, people’s purchasing power is increasing.

If wages were to rise as fast as prices right now, it could lead to a wage-price spiral, something the Fed is trying to prevent.