American workers are again losing purchasing power as inflation outpaces wage growth, extending a squeeze that research says persisted after the pandemic-era price surge. Inflation has exceeded wage growth for four consecutive months, and almost three-quarters of consumers in August expected prices to rise faster than their incomes over the following year. A University of Chicago and ADP working paper using payroll data through 2025 found real wages fell between December 2020 and 2024 for nearly 40% of workers, compared with about 24% before the pandemic. Grocery prices have risen 32% in five years, while more than one-quarter of working-age adults using credit cards for groceries could not pay their balance in full or missed a minimum payment. U.S. credit card balances reached $1.26 trillion in the second quarter, adding to financial pressure even as producer-price inflation moderated in July.