When you factor in rising wages, it can be argued there's actually no inflation.

I'm David Brancaccio. The big economic story of the morning is set to be the release of the Consumer Price Index for June.

The pros are forecasting prices will be up 3.1% in a year, down from 3.3% a month earlier.

So some improvement is expected. We will see but amid all the

frustration about inflation we do note that incomes have continued to rise up by more

than inflation in the last year where where that went up 3.9%.

Marketplace's Mitchell Hartman has more.

Inflation peaked at 9% a year in June 2022 blowing way past wages which never grew by more than 6 percent.

But by May of last year real earnings, that's the purchasing power of wages after accounting for price increases.

We're gaining ground month after month.

Some consumers tell us that their income gains have outpaced inflation.

But Joanne Shoe, director of the University of Michigan Consumer

Surveys, says that hasn't improved sentiment much. Those gains have been

heavily eroded by continued inflation and specifically continued high prices.

Which is taking a toll on consumer spending.

Mike Fret and Tony is chief economist at the Mortgage Bankers Association. We're seeing some caution pulling back from discretionary items when they have the ability to do so.

The top third of earners have become more optimistic, but Joanne Schu says most middle and lower income

consumers are just trying to catch up and see little prospect of getting ahead.

I'm Mitchell Hartman for Marketplace.

Citigroup is still too I'm Mitchell Hartman for Marketplace.

Citigroup is still too risky a company.

That's the assessment of the Federal Reserve and another bank regulator.

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