Wage growth slowing in U.S. despite cost of goods continuing to rise

Americans are receiving smaller pay raises while the cost of goods continues to rise.

Data released by the U.S. Bureau of Labor Statistics shows that non-supervisory workers are receiving 3.4% pay raises on average hourly earnings, which is lower than the near 4% in previous years.

"Wage growth is how fast wages are growing. So, year over year, people get more money a raise or something along those lines. The wage growth tells you what that percentage change is," University of San Diego Economics Professor Alan Gin, Ph.D. said.

The slowing growth comes as economists are worried about inflation rising again.

"When you compare wage growth to inflation, it gives what economists call the real wage. You can make more money, but if you have to pay more for goods you could actually be worse off," Gin said.

The average price of a regular gallon of gas in Houston is $3.86, which is higher than the $3.04 the previous month and $2.79 this time last year, according to AAA.

"I think it's ridiculous that everything has gone up. You can go into the store and buy eggs. Starting there and everything has gone up and even putting your kids in daycare," Madison White, who lives in Houston, said.

For now, people are still seeing their pay rise slightly faster than the rising prices of goods, according to data from the U.S. Federal Reserve.

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