{"id":314121,"date":"2025-11-26T04:35:11","date_gmt":"2025-11-26T04:35:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/314121\/"},"modified":"2025-11-26T04:35:11","modified_gmt":"2025-11-26T04:35:11","slug":"inflation-stifles-us-income-growth-ahead-of-holiday-shopping-season","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/314121\/","title":{"rendered":"Inflation stifles US income growth ahead of holiday shopping season"},"content":{"rendered":"

Inflation is weighing on US incomes to a degree comparable to the 2008 Great Recession \u2013 potentially reducing consumer spending power ahead of the crucial holiday shopping season, according to a JPMorgan report released Tuesday.<\/p>\n

As of October, the median income growth for people ages 25 to 54 stood at just 1.6% once adjusted for inflation, according to an analysis of bank account data.<\/p>\n

\u201cHouseholds are going into the end of the year with weak income growth and bank balances that remain flat, after adjusting for inflation,\u201d JPMorgan Chase Institute said in a statement.<\/p>\n

Inflation is weighing on US incomes just ahead of the crucial holiday shopping season. REUTERS<\/p>\n

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In some cases, lower checking and savings account balances could reflect money being diverted to higher-yield money markets or other funds to take advantage of current interest rates, the institute noted.<\/p>\n

But that 1.6% growth is similar to the rate seen in the early 2010s, when the unemployment rate was stuck at 7% and slow to come down, the analysis emphasized.<\/p>\n

The unemployment rate ticked up to 4.4%<\/a> in September, the most recent month for which data are available \u2014 the highest level since October 2021.<\/p>\n

The JPMorgan analysis noted that young workers are not enjoying the same strong income gains normally seen early in their careers when they are frequently changing jobs and earning promotions.<\/p>\n

Meanwhile, about half of workers ages 50 to 54 have suffered an earnings loss after accounting for inflation.<\/p>\n

As of October, the median income growth for those aged 25 to 54 stood at 1.6% once adjusted for inflation, according to the analysis. AP<\/p>\n

Since older workers typically see slower wage gains, it is \u201ceasier for an uptick in inflation or weakening in the labor market to send them into negative territory,\u201d the analysis stated.<\/p>\n

\u201cWith pandemic-era excess cash liquidity in the rearview mirror, consumers are facing a holiday spending season with budgets tempered by tepid income growth but augmented by strong stock market gains \u2013 the latter highly unequally distributed,\u201d the JPMorgan Institute said.\u00a0<\/p>\n

\u201cImportantly, nominal growth remains roughly consistent with pre-pandemic levels, but real purchasing power gains are at a relatively low level because of the higher pace of consumer price increases.\u201d<\/p>\n

The unemployment rate ticked up to 4.4% in September \u2013 its highest level since October 2021. Getty Images<\/p>\n

US inflation rose 3% on a yearly basis<\/a> in September, the fastest rate since January, according to the Consumer Price Index, which was released last month.<\/p>\n

But wholesale inflation ticked up just 0.3% in September, keeping the annual figure at 2.7%, the Bureau of Labor Statistics said Tuesday.<\/p>\n

Retail sales rose 0.2% in September, though a 0.3% jump in prices meant spending for the month actually fell 0.1%, the Commerce Department stated Tuesday.<\/p>\n

US inflation rose 3% on a yearly basis in September, its fastest rate since January, according to the Consumer Price Index. AP<\/p>\n

Also on Tuesday, a survey from the Conference Board found consumer confidence plunged to 88.7 in November \u2013 down from 95.5 in October. That\u2019s the lowest level since April.<\/p>\n

Only 1% of consumers said business conditions were \u201cgood,\u201d down from 20.1% the previous month, and just 6% said jobs were \u201cplentiful,\u201d a steep fall from 27.6% in October.<\/p>\n

With Post wires<\/p>\n","protected":false},"excerpt":{"rendered":"Inflation is weighing on US incomes to a degree comparable to the 2008 Great Recession \u2013 potentially reducing…\n","protected":false},"author":2,"featured_media":314122,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101,21368,3425,2402,2897],"class_list":{"0":"post-314121","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-holiday-shopping","11":"tag-income","12":"tag-inflation","13":"tag-spending"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/314121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=314121"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/314121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/314122"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=314121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=314121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=314121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}