Inflation Swallows Raises in the Washington Area

September 26th, 2011 - By TheEditor

(Washington Post) — As salary increases have gotten smaller in recent years, you might have consoled yourself with the knowledge that at least you were staying ahead of inflation. Now you may not even be able to count on that.  For the first time since 1979, the increase in salaries in the Washington area was less than the rate of inflation. Wages as a whole for metropolitan Washington rose just 0.04 percent in 2011, a new salary survey found. The rate of inflation in the region shot up to 4.1 percent in July (the latest month for which the figure is available) compared to a year ago.  “If you earn $100,000 and get a 2 percent increase and the rate of inflation is 3 percent, you’re already in the hole $1,000,” said Angelo Kostopoulos, president of Akron Inc., a District-based research firm that compiled and analyzed survey data for the Human Resource Association of the National Capital Area.

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