WCPO: UC economist says wages can’t keep up with inflation
Michael Jones says consumers can purchase less than they could a year ago
Multiple disruptions to the U.S. economy are posing problems for consumers, according to Michael Jones, PhD, associate professor of economics at the University of Cincinnati Carl H. Lindner College of Business.
“Today, consumers could purchase about 2% less than they could a year ago,” Jones told WCPO.
Michael Jones, PhD, associate professor of economics at the University of Cincinnati Carl H. Lindner College of Business.
Inflation is at 7.9%, per the Bureau of Labor Statistics. Problems resulting from the COVID-19 pandemic, supply chain shortages and the war in Ukraine are driving the price of some products above the inflation rate.
“It’s primarily being goods relative to services,” Jones said. “And these are used cars, new cars, furniture, food at home. All of these categories are above the average inflation of 7.9%. Services like health care and education (are) actually quite low.”
Jones noted supply chain issues are being resolved in certain sectors of the economy, but pent-up demand from consumers is still prevalent elsewhere.
“They’re no longer able to afford that new car,” Jones said. “And as demand starts to drop because they can’t afford the borrowing cost, then you’re going to start to see those prices go down.”
Impact Lives Here
The University of Cincinnati is leading public urban universities into a new era of innovation and impact. Our faculty, staff and students are saving lives, changing outcomes and bending the future in our city's direction. Next Lives Here.
Related Stories
6 ways starting a GLP-1 medication could affect your emotions
May 20, 2026
When patients first start taking a glucagon-like peptide-1 (GLP-1) medication, they probably expect to feel full. But they might not anticipate how it can influence their emotions. The medications act on the stomach and the brain, said Malti Vij, MD, a University of Cincinnati adjunct associate professor in the College of Medicine's Department of Internal Medicine and a diplomate of the American Board of Obesity Medicine.
Inaugural AI Symposium in Finance & Accounting explores the investment landscape
May 19, 2026
The Johnson Investment Institute hosted the first-ever AI Symposium in Finance & Accounting on May 8 at Lindner Hall, welcoming industry leaders from national firms, academics from leading universities, and emerging finance and accounting talent.
Pocket-sized population threat
May 18, 2026
The Financial Times took a deep dive into why populations around the world continue to be on the decline. The publication cited new University of Cincinnati research as part of the investigation that looks at the fall of fertility in the digital era.