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"But why, Don Suave?"....."Because They're Morons."
7 Mar 2024 1:59 pm
R.Suave » 07 Mar 2024, 2:24 pm » wrote: ↑ If Real Wage growth is positive, wages are exceeding inflation.
Real wages are calculated by taking nominal wage rate, dividing by the CPI and multiplying by 100.
The problem with that calculation are:
What is the nominal wage? Are you using a national average? Averages can be misleading...a national median wage would be better. Nominal wages are also sticky. There is typically a several month lag before they react to changing employment conditions.
What CPI are you using? The BLS publishes several. There is the all-inclusive CPI, but there is also a CPI-U, CPI-E, CPI-W, C-CPI-U.