Workers’ wages rose in dollar terms in September, but their purchasing power declined. The Bureau of Labor Statistics reported October 14 that average hourly earnings increased 0.1% from August while consumer prices rose 0.6%, leaving inflation-adjusted hourly earnings down 0.5% for all private nonfarm employees. Real weekly earnings also declined 0.5% over the month, and real hourly earnings were 0.7% lower than a year earlier. These are averages across workers, not evidence that every employee experienced a pay cut. They illustrate how a nominal raise can be overtaken by higher prices, leaving less spending power for housing, transportation and routine purchases. The release does not establish what happened to any individual household.