A report found that median weekly wages more than doubled before inflation, rising from $482 at the end of 1999 to $1,040 at the end of 2025.
Americans' wages have broadly kept up with inflation over the past quarter-century, but most feel that they are not enough when measured against recent price spikes, according to a new analysis.
The Pew Research Center found that median weekly wages more than doubled over the course of the century, rising from $482 at the end of 1999 to $1,040 at the end of 2025. After adjusting for inflation, the gain stood between 11% and 22%, depending on which inflation measure is used.
Inflation continues to be at the top of Americans' concerns. In Pew's own April survey, 66% of respondents said inflation is a "very big problem" facing the nation, slightly higher than last year.
The most widely used inflation measure, the Consumer Price Index for All Urban Consumers, known as CPI-U, showed that the median weekly wage from December 1999 would equal about $928 in December 2025 dollars. Using that index, workers' real buying power rose 12.1% over 26 years.
Using the "Chained Consumer Price Index," or C-CPI-U, which adjusts more quickly when consumers switch to cheaper alternatives during price spikes, the same 1999 wage would equal nearly $866 today. Under that model, real wage growth was closer to 20.1%.
Meanwhile, the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures price index, or PCE, suggested even stronger gains. Using the PCE, Pew found that the median wage's buying power increased by 22.1% between 1999 and 2025.
The reason for the discrepancy is that each inflation gauge measures consumer behavior differently. CPI relies heavily on household surveys tracking what consumers buy, while PCE is based more on business sales data and includes a broader range of spending categories.
"For instance, if steak prices rise and consumers respond by switching to buying cheaper chicken, the market basket that underpins the index may have too much steak in it and not enough chicken, pushing up the reported inflation rate," the report explained.
Still, the document notes that no inflation measure is universally accepted as the "correct" one, and each comes with strengths and weaknesses. The report also emphasizes that the time frame matters just as much as the methodology. While wages outpaced inflation over the long term, the picture changed dramatically in recent years.
Over the five years leading up to December 2025, real wages declined after adjusting for inflation, regardless of which index was used. In other words, Americans may have gained ground over decades, but many have lost purchasing power during the post-pandemic inflation surge.
Originally published on IBTimes
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