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The energy price shock from the US-Israeli war with Iran is further compounding longstanding affordability concerns for Americans weighed down by years of fast-rising prices.

However, at least in recent years, Americans' pay growth has outpaced the rate of inflation. That changed last month: Annual inflation-adjusted average hourly wage growth went negative for the first time since April 2023.

This comes as Americans also have to contend with an energy price shock that's rippling through the economy, making some of the most commonly purchased items even more expensive.