What's my raise actually worth?
A 3% raise during 4% inflation is a pay cut.
The raise on the paystub feels like progress. Inflation eats chunks of it before you ever see the money. Real-dollar math, using BLS CPI-U.
The math, in real dollars
On paper
$5,000/yr
6.7% raise, before inflation
In real dollars
$2,419/yr
3.2% raise, after inflation
Verdict
So this means you actually got a $2,419 raise after adjusting for inflation.
Inflation since 2025: 3.4%. That means $75,000 in 2025 buys what $77,581 buys today.
Source: BLS CPI-U, all-urban consumers, US city average. Data refreshes monthly.
Now what?