Inflation continues to eat into the US economy and more and more impact on hourly earnings. According to data released this week by the Bureau of Labor Statistics, real average hourly earnings for all employees decreased by 1% from May to June of this year. The decrease results from the combination of a 0.1 percent increase in average hourly earnings, offset by an larger increase in the Consumer Price Index (CPI) of 1.3 percent. Year over year, the news was worse with real average hourly earnings decreasing 3.6 percent from June 2021 to June 2022.