16:33 - 26.05.2026

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May 26, Fineko/abc.az. Inflation has reached 3.8% in annual terms in April in the U.S., while hourly wages increased by 3.6%, which is why, for the first time in two years, household incomes began to lag behind price increases.

ABC.AZ informs that in the UK, real wages are practically not growing, and in the coming months they may begin to decline due to accelerating inflation and a weak labor market.

In the eurozone, according to analysts, real income growth in 2026 may approach zero, and in some countries it may become negative.

Economists warn that a decrease in purchasing power can either weaken consumer demand and slow down the economy, or, conversely, provoke wage growth and consolidate high inflation. There is also a growing risk of moderate recession in the eurozone, which will further slow down the recovery of household incomes.