The problem with inflation is that even after the rate of inflation is finally brought under control, the prices never seem to go back down. This is what many Americans are experiencing in the early months of the Trump administration. Gasoline prices at the pump and eggs are the only noticeable reduced prices we have actually seen.

On Tuesday, Zero Hedge posted the following chart:

So if you are wondering why your grocery bill looks more like what used to be a car payment, now you know why.

The article concludes:

The -0.7% drop in real hourly earnings since January 2021 highlights a fundamental truth: even small mismatches between wage growth and inflation, when sustained over years, can erode financial stability for everyday Americans.

There is reason for optimism, though. If the current trend continues, with inflation stable and wage growth healthy, real wages could soon surpass pre-crisis levels. But that path remains vulnerable to shifts in inflation or labor market conditions.

For a longer-term look at how wages and inflation have tracked historically, check out the data from 2007 in this USAFacts visualization on Voronoi.