A basic oil change is $89 now.

This highlights the difference between inflation and wage growth. Going from $34.99 to $89 is about a 154% increase: 2019: $34.99 Today: $89 Increase: $54.01 Price increase: 154% The price is about 2.54× what it was. If your paycheck went up, say, 20–30% over that same period, your purchasing power for that service has fallen substantially. That doesn't establish that the entire $54 increase is profit. The shop may have experienced higher costs for oil, parts, rent, insurance, utilities, equipment, taxes, and labor. But the existence of higher costs doesn't by itself tell us how much of the final price increase went to each category or to profit. When everyday services rise dramatically faster than people's incomes, even someone who gets regular raises can feel poorer in practical terms. #PurchasingPower #WageGrowth #Inflation