If you have filled up your gas tank lately, gone to the grocery store, or looked into purchasing a new home, this news should come as no surprise: inflation is high, and your wages aren’t keeping up.
New economic data released by the Bureau of Labor Statistics last week painted a sobering picture: costs for everyday goods like gasoline, groceries, and rent are up 3.7% from this time last year. Energy prices have risen more than 20% year over year, while gasoline prices are up more than 34% – a direct result of the continued disruptions to global energy supplies caused by the war on Iran that began nearly 8 months ago.
Meanwhile, worker wages aren’t keeping up. Any increases in hourly wages since the start of President Trump’s second term in January 2025 have been offset by rising costs, the data show. For the past six months, inflation has been rising at a faster rate than average hourly pay.
“The American people were promised lower prices, better government, and an end to decades-long wars abroad. Like in any deal with a conman, we’ve gotten exactly the opposite,” AFGE National President Everett Kelley said. “Unelected billionaires took a chainsaw to our government with DOGE, while punitive tariffs and costly wars are driving up costs of groceries, fuel, and other staples for everyday Americans. Something has to change.”
Federal employees have been hit particularly hard. Most civilian federal workers got a meager 1% raise at the start of the year, over the objections of President Trump, while the White House has proposed a pay freeze for most federal workers next year.
Federal retirees aren’t faring any better. While monthly pensions will increase 2.6% for retirees in the Federal Employees Retirement System (FERS) and by 3.6% for retirees under the Civil Service Retirement System (CSRS) next year, these cost-of-living adjustments don’t keep pace with rising expenses.
Current and retired employees enrolled in health care through the Federal Employees Health Benefits Program are facing a 10.9% average increase in their share of insurance premiums next year. It’s the third consecutive year of double-digit premium increases in the FEHBP.
AFGE has joined more than 100 members of Congress in urging lawmakers to overturn Trump’s pay freeze and at least provide all federal employees with the same 3.8% pay raise going to law enforcement officers in 2027. Even better, Congress should pass the 4.1% pay raise called for under the Federal Adjustment of Incomes Rates (FAIR) Act.
Meanwhile, AFGE and our union allies are encouraging members to support lawmakers who will have workers’ backs when they go to the polls for the midterm election Nov. 3.
“Today’s numbers make it clear this problem isn’t going away until we elect new leaders who will help workers instead of billionaires,” AFL-CIO President Liz Shuler said in response to the newly released economic data.
“In the final sprint to Election Day, we’re knocking on doors, making phone calls and talking to people at their worksites. They’re telling us they are pissed off about how expensive gas, food and everything is. But they’re also saying they are ready to fight back by voting for pro-worker candidates across the country, including a record number of union candidates,” she said.
You can find all of AFGE’s endorsed candidates on our online Election Center.
Written by OPEIU 2 AFL-CIO
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