High performers will likely have an easier time asking for more money, according to Dooney, and businesses may be more willing to give out one-time bonuses to reward employees. If you've been in the position for longer than a year, have taken on more responsibility or otherwise outperformed, that's all information to bring up with your manager or take to a performance review, if you have one at the end of the year. Instead, take the time to assess and reflect on what you've achieved in your role, she said. 'I suspect that would get into a messy argument with a hiring manager because somebody in that position could turn around and say, 'we're experiencing price increases as well,'' said Konkel, adding that people should probably leave inflation out of any wage or raise discussions. 'The data doesn't tell the personal story of every single person,' Hamrick said.Įven if you are being hit with higher prices due to inflation, experts wouldn't advise using that as a reason to ask for a raise at work. 'Not everybody flew on a plane or bought a used car,' in the last year, said Brett Ryan, senior U.S. If you aren't planning to buy a car, for example, or aren't taking any trips that would be hit by higher fuel prices, you won't be hit with the highest areas of inflation. Prices of used cars and trucks, though they declined on the month in September, are up more than 20% from a year ago.īecause of these pockets of inflation, most consumers won't see their individual costs go up 5.4% across the board. Energy prices are up nearly 25%, and gasoline is up more than 42% from September 2020. Energy also jumped 1.3%, with the gasoline index up 1.2%.įor the year, there are also a few specific things that are driving the overall high index reading.

Food rose 0.9%, with food at home jumping 1.2% from the previous month. The indexes for food and shelter in September contributed more than half of the monthly increase. 'For most people, prices of the things that they're having to pay for are going up, but these impacts are quite varied across the board,' said Mark Hamrick, senior economic analyst Bankrate. While inflation has jumped overall, the consumer price index considers an array of things, a few of which have contributed more to rising costs than others. 'It depends on your basket of goods as a consumer.' 'It's a lot more nuanced than that,' said AnnElizabeth Konkel, an economist at the Indeed Hiring Lab.

There is some good news for workers worried about their earning power being eroded by inflation – economists generally say that getting a less than 5% raise this year isn't the same as taking a pay cut. More from Invest in You: An easy way to alleviate some of the money anxiety in your life 8 companies help pay off student loans and let you work from home Before you impulsively quit your job, do these four things 'But what we see is more strategies around really rewarding high performers.'

'Companies looking at their budgets realize that are probably not going to meet inflation,' said John Dooney, a human resources manager with the Society for Human Resources Management. The group also projected that cash for raises will be about 3% in 2022 as well. salary increase for 2021 is 3%, according to data from The Conference Board. While pay raises are getting back to pre-pandemic levels, they might not keep pace with inflation in the next few years – the budgeted median U.S.

If they don't get a 5.4% raise in the next year, is that technically a pay cut? It also prompted a 5.9% cost-of-living increase for people on Social Security, the largest jump in 40 years.Įspecially at the end of year, people may be wondering if recent inflation is eroding their pay. The uptick in inflation has already hurt consumers, who are likely feeling the higher costs of certain items on their wallets.

Cost of living increase 2021