The Consumer Price Index (CPI) represents the change in the cost of living between two periods of time. Many employers monitor the CPI closely because wages tend to follow changes in the cost of living. As goods become more expensive, workers require additional income to pay for them. On the other hand, if prices remain relatively stable or begin to decline, wage increases are seen less as a necessity and more of a luxury. Most large companies base major decisions about compensation rates on the CPI more than any other figure.
Comp and Benefits: A Bird’s-Eye View
We thought it might be interesting to step back for a change and take a look at the big picture in benefits and compensation.
Inflation Takes a Toll on Wages
Inflation-adjusted (real) average weekly earnings fell by 0.4 percent from October to November after seasonal adjustment, according to preliminary data released by the Bureau of Labor Statistics of the U.S. Department of Labor.
Wages Rise as Inflation Eases
Inflation-adjusted, or real, average weekly earnings rose by 0.5 percent from July to August after seasonal adjustment, according to preliminary data released by the Bureau of Labor Statistics of the U.S. Department of Labor.
