Your compensation isn't driven by the things it can buy. It is driven by the balance of supply and demand in the labor pool, which is mostly insensitive to inf

Your compensation isn't driven by the things it can buy. It is driven by the balance of supply and demand in the labor pool, which is mostly insensitive to inflation in the short term. In the long term, sometimes inflation is caused by employers being able to charge more for their products. If they can raise prices faster than their costs, then they'll be able to afford more folks to work, increasing demand in the labor pool, hence increasing labor prices (i.e. compensation). Still, it can take several quarters for information about pricing to flow through the supply chain and impact wages.