Real Wage Erosion Returns: Inflation Outpacing Pay Raises, Consumer Sentiment Plunges

New data shows real wages falling again as inflation outpaces pay raises, with 37% of workers never recovering from 2021-2022 losses. Consumer sentiment dropped to 51.0 in August, with only 8% expecting income to outpace inflation. This structural wage lag explains gloomy sentiment despite low unemployment. Important for household financial planning and consumer spending outlook.