Real Hourly Earnings Fell in September
Rising consumer prices outpaced wage growth for the third consecutive month across the United States.
Updated on Oct. 14, 2026 in Inflation
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Real average hourly earnings in the United States declined by 0.5 percent in September. This drop occurred as consumer prices rose by 0.6 percent over the same period.
Why it matters
The decline in real earnings is driven by sharp increases in the cost of energy, with the gasoline index accounting for more than half of the total monthly rise in consumer prices. These figures highlight how inflation continues to erode the purchasing power of hourly paychecks for American workers.
Real average hourly earnings fell 0.5 percent in September, while nominal average hourly earnings rose 0.1 percent to $37.81. Consumer prices increased 3.7 percent over the year, led by a 74.2 percent annual increase in fuel oil prices.
The players
US Bureau of Labor Statistics
This federal agency is the principal fact-finding body for the U.S. government in the field of labor economics and statistics.
The details
The US Bureau of Labor Statistics measured these figures by comparing take-home pay against the consumer price index. Despite a 3.2 percent annual increase in shelter costs, food prices at home saw a slight decrease of 0.1 percent in September.
Timeline
July 2026 saw real average hourly earnings fall 0.1 percent.
August 2026 saw real average hourly earnings fall 0.1 percent.
September 2026 saw real average hourly earnings fall 0.5 percent.
October 14, 2026, marked the release of the September inflation data.
November 10, 2026, is the scheduled date for the release of the October inflation report.
Macro View
The current economic trajectory, defined by high energy costs driving inflation, follows a pattern of rising consumer prices impacting real wage growth. The September inflation reading will determine the Social Security cost-of-living adjustment for 2027.
The persistent rise in consumer prices means families have seen their actual purchasing power decline for the third straight month. Budgeting for energy costs has become increasingly difficult as fuel oil and gasoline prices continue to climb significantly year-over-year.
The takeaway
Workers should monitor energy price trends as they remain the primary driver of current inflationary pressures. Adjusting monthly household budgets to account for fluctuating fuel and transportation costs can help mitigate the impact of declining real earnings.
What happens next
The US Bureau of Labor Statistics is scheduled to release the next inflation report for October on November 10, 2026.
Further reading
For more on how rising prices impact the broader economy, visit the United States Inflation section.
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