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Rising Inflation is Eroding Wage Gains

Rising prices for things like gasoline and housing are eating into U.S. consumers' wage increases, a potential threat to the U.S. expansion and the stock market. The Labor Department’s consumer-price index rose 2.9% from a year earlier in June, data showed Thursday. Economists fear the widening gap between inflation and wage growth will dampen consumer spending, which drives two thirds of the U.S. economy.