Personal income has outpaced inflation for 32 straight months as inflation blip falls off radar

Personal incomes grew 0.4 in August and have grown 5.1 percent the past twelve months, according to the latest data compiled by the Bureau of Economic Research.

That’s great news, because right now, consumer inflation is only growing at 2.9 percent the past twelve months. Politically, that’s about all you need to know. Why?

Regardless of current anxieties related to tariffs, as long as wages and incomes outpace inflation, as they have for 32 straight months now since Jan. 2023, the American people on balance are getting ahead. In terms of personal wealth, inflation versus income is where the rubber meets the road.