From the University of Michigan’s Survey of Consumers. It asks households “By about what percent do you expect your (family) income to increase during the next 12 months?”
Their answer is in the graph above. With prices still going up, even by as little as 2% a year, real incomes are being eroded and, strangly, for such consumers debt service is becoming increasingly difficult. This real income erosion process which started a few ago will eventually accumulate into a substantial decrease in purchasing power. Not very bullish for the recovery.
Although I think inflation will eventually rear its ugly head, this is quite humbling. On the other hand, it could form the basis of eventual demands for wage increases on the part of impoverished workers.