The U.S. Bureau of Labor Statistics (BLS) reported this week that real average hourly earnings for all employees decreased 0.6 percent from April to May. The decrease stems from an increase of 0.4 percent in average hourly earnings combined with an increase of 1.0 percent in the Consumer Price Index (CPI). Real average hourly earnings decreased 3.0 percent year over year from May 2021 to May 2022. The change in real average hourly earnings combined with a decrease of 0.9 percent in the average workweek resulted in a 3.9-percent decrease in real average weekly earnings over this period. At the same time, BLS also reported that the producer price index rose 10.8% year over year and 0.8% in May. The index, which gauges inflation before it reaches consumers, remains historically high, despite declining from a 10.9% year-over-year increase in April following an 11.5% year-over-year increase in March.