Americans still earning the same salaries they made before the COVID-19 pandemic have lost nearly a quarter of their purchasing power, as consumer prices climbed more than 30% through September, according to federal inflation data.
Data from the Bureau of Labor Statistics (BLS) shows that a $100,000 salary in January 2020 would need to reach roughly $130,612 in September 2026 to buy the same amount of goods and services.
The Consumer Price Index (CPI), which tracks changes in the prices Americans pay for everyday goods and services, rose from 257.971 in January 2020 to 336.940 in September, a cumulative increase of 30.6%.
That means an American who earned $75,000 before the pandemic would need about $97,959 today to maintain the same purchasing power. A worker earning $50,000 would need approximately $65,306, while someone making $150,000 would need nearly $195,917.
For workers whose paychecks have not changed since January 2020, the purchasing power of those earnings has dropped about 23.4%, based on calculations using federal inflation figures. The numbers highlight how years of accumulated inflation have continued to squeeze American households, even as workers received nominal raises that may not keep pace with rising costs.
The surge in prices followed trillions of dollars in federal pandemic relief approved under both President Donald Trump and former President Joe Biden. According to the Congressional Research Service, Congress enacted roughly $5.6 trillion in COVID-era spending, including the CARES Act under Trump and Biden’s $1.9 trillion American Rescue Plan.
That massive wave of federal stimulus contributed to inflationary pressures at a time when pandemic-related supply disruptions were limiting production. Economists warned at the time that additional government spending risked driving prices higher.
The loss of purchasing power comes as inflation picked up again in September. Consumer prices rose 3.7% over the previous year, up from 3.4% in August.
Gasoline prices jumped 9.1% in September alone and were 34.2% higher than a year earlier. Fuel oil prices soared 74.2% year over year, while the broader energy index climbed 20.4%.
The latest report also showed that wages are once again falling behind. Real average hourly earnings, which are adjusted for inflation, fell 0.5% from August to September, according to the BLS. Compared with September 2025, inflation-adjusted hourly earnings were down 0.7%, meaning average pay increases did not make up for price growth over the past year.
The national CPI reflects an average across a broad basket of consumer purchases and does not necessarily capture every household’s experience. The BLS acknowledges that families whose spending differs from the national average can see substantially different changes in their living costs.
The Iran war helped push U.S. diesel prices to a record $6.53 per gallon, driving up transportation and agricultural costs. Record diesel prices have squeezed farmers during harvest season and could lead to higher grocery prices as rising production and freight costs move through the food supply chain.
Cost of living remains one of the top issues for voters heading into November’s midterm elections, with voters blaming Trump and Republicans for inflation, largely due to the U.S. and Israel’s war against Iran.
An August Reuters/Ipsos poll found that 47% of registered voters said the cost of living was the single most important factor in their congressional vote, while 71% of Americans disapproved of Trump’s handling of the issue.
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