U.S. Consumers' Buying Power Increased for the First Time in More Than Two Years

According to a report from the Bureau of Labor Statistics (BLS), real average hourly earnings—employee wages after accounting for inflation—increased by 0.2% from May 2022 to May 2023. The increase is the first since March 2021, indicating a turn in the tide of inflation, particularly in how it impacts consumers' wallets.

The BLS June inflation report shows a 4% year-over-year increase in the cost of consumer goods and services, down from a four-decade high of 9.1% in June 2022.

Why It Matters

The annual inflation rate continues to remain high—the Federal Reserve's target rate is 2%—but an increase in real average wages is a good sign that consumer buying power is finally starting to recover from persistent inflation.

Take advantage of back-to-school sales tax holidays

School may be out for summer but deals on back-to-school expenses will start up later this month in several places. Sixteen states (Alabama, Arkansas, Connecticut, Florida, Iowa, Maryland, New Mexico, Ohio, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, Virginia and West Virginia) are all having sales tax holidays on back-to-school items in July and early August. Check out what your state is offering to get clothing, school uniforms, footwear, school supplies or other items sans sales tax. Think about getting ready for Christmas/Holiday Presents!

Easy Lunch/Dinner Recipe

Polenta Chili Casserole

Ingredients

4 cups water
1/2 teaspoon salt
1-1/4 cups yellow cornmeal
2 cups shredded cheddar cheese, divided
3 cans (15 ounces each) vegetarian chili with beans
1 package (16 ounces) frozen mixed vegetables, thawed and well drained
1 Package of ground turkey or beef

Directions

Preheat oven to 350°. In a large heavy saucepan, bring water and salt to a boil. Reduce heat to a gentle boil; slowly whisk in cornmeal. Cook and stir with a wooden spoon until polenta is thickened and pulls away cleanly from side of pan, 15-20 minutes. In a pan brown meat.
Remove from heat. Stir in 1/4 cup cheddar cheese until melted.
Spread into a 13x9-in. baking dish coated with cooking spray. Bake, uncovered, 20 minutes. Meanwhile, heat chili according to package directions.
Spread vegetables over polenta; top with chili. Sprinkle with remaining cheese. Bake until cheese is melted, 12-15 minutes longer. Let stand 10 minutes before serving.

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July Newsletter