Thursday, September 21, 2023

The Daily Money: Americans are still feeling pinched by inflation

While Americans have a little more breathing room, most say they still haven't caught up to the big run-up in prices and are spending warily.

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The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Thu Sep 21 2023

 

Bailey Schulz Money Reporter

@bailey_schulz

Good morning, it's Bailey Schulz here to bring you the day's top headlines.

After trailing inflation for over two years, average U.S. wage growth turned the tables in May, outpacing price increases, giving consumers more purchasing power and bolstering the economy. 

But while the development means Americans have a little more breathing room, most say they still haven't caught up to the big run-up in prices and are spending warily, according to an exclusive USA TODAY/Harris Poll survey and interviews with workers.

Of the 52% of employees who got a raise the past year, 70% say it has eased their financial stress from inflation and allowed them to make additional purchases, according to the survey. But about one-fifth of those who got a pay increase said it wasn't enough to afford those kinds of goods and services comfortably. Seventy-eight percent said they would need another bump to feel fully confident in their financial health.

Whether or not pay hikes continue to top inflation and encourage Americans to spend at a healthy clip could help determine if the U.S. dodges a recession over the next year, says Gregory Daco, chief economist of EY-Parthenon.

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Keenya Taylor shops for groceries after work at a Giant Food in east Philadelphia on Friday, Sept. 8, 2023.

Josh Morgan, Josh Morgan-USA TODAY

Murdoch stepping down from Fox

Rupert Murdoch is stepping down from his roles as chair of Fox Corporation and executive chairman of News Corp.

Murdoch, 92, is transitioning to the title of chairman emeritus and said he was in good health. He will officially make the transition in November. His son, Lachlan, is set to become the sole chairman of both companies.

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Starbucks will have to face a consumer protection lawsuit alleging that its fruit Refresher drinks do not contain the fruit advertised, a federal judge decided on Monday.

The plaintiffs claimed in the suit that they paid a premium price for the drinks, which they would not have purchased had they been aware they were missing some of the named fruits. They alleged that the products are instead made primarily of water, grape juice concentrate and sugar, for which they would not have been willing to pay the same price.

Starbucks said in a statement that the allegations were "inaccurate and without merit," and added, "we look forward to defending ourselves against these claims."

About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.

For subscribers
Keenya Taylor shops for groceries after work at a Giant Food in east Philadelphia on Friday, Sept. 8, 2023.

U.S. wage growth has outpaced inflation since May, finally giving workers more purchasing power. Pay gains had been running behind price increases.

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