Nominal wage growth (how many more dollars per hour you earn) is not the same as real wage growth (how much more stuff you can buy). Subtract CPI from wage growth and you get real wage growth — the metric that actually matters for purchasing power.
From 2021-2023, nominal wages rose about 5% annually while CPI ran 5-9%. Real wages actually FELL for most Americans despite raises. From 2014-2019, by contrast, nominal wages rose 3% while CPI ran 1-2% — real wage gains of 1-2% per year were common.
For personal finance: when negotiating a raise, the headline "X percent increase" matters less than whether X exceeds current CPI. Anything below inflation is effectively a pay cut.