Inflation Outpaces Wage Increases

Rank-and-file workers can expect to see their base pay rise by an average of 3.5% in 2009 -- the same amount they received this year, reports Watson Wyatt Worldwide Inc., a global human-resources consulting firm. High performers are projected to fare better, gaining an average of 4.4% in base pay, while mediocre performers are likely to see their paychecks increase by 2% or less.

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But even with a 3.5% raise, most workers will likely find that extra cash consumed by rising costs for everything from food to gasoline. The latest report from the U.S. Labor Department showed inflation rising at a brisk 5% in June -- more than the raise most employees will receive in 2009.