Paychecks Outpace Inflation Under Trump, Reports Show
American paychecks have grown faster than prices under Trump, according to recent data.
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American households have seen their buying power increase as paychecks have grown faster than inflation since President Donald Trump took office, according to recent data from the Bureau of Labor Statistics. This marks a shift from years of declining real compensation due to high inflation.
Paycheck Growth Outpaces Inflation
From January 2025, when Trump was inaugurated, to August 2026, the average weekly earnings of private-sector workers rose from $1,222.14 to $1,298.94, a 6.3% increase. During the same period, the Consumer Price Index rose by 4.8%, meaning that when adjusted for inflation, weekly pay increased by 1.5%, or about $18 per week.
Recent months have shown even stronger gains. From May to August 2026, average weekly earnings rose by 1.0%, while prices remained essentially flat, up just 0.05%. This means real weekly pay increased by 1.0%, or about $12 per week. August is the latest month for which both earnings and prices are available, with the September price index expected on October 14.
Biden Administration Seen as a Period of Pay Decline
Under the Biden administration, real weekly earnings have fallen after adjusting for inflation. From January 2021 to January 2025, average weekly earnings increased by 16.7%, but prices rose by 21.4%, leading to a 3.9% decline in real pay. In January 2025 dollars, the average weekly paycheck dropped from about $1,272 to $1,222, a loss of approximately $50 per week.
Production and nonsupervisory workers, who make up about four-fifths of private payrolls, have also seen improvements under Trump after declines during the Biden era. Real weekly pay for these workers fell by 1.6% from January 2021 to January 2025, but rose by 1.5% from January 2025 to August 2026.
Source: Breitbart
