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Salary vs. Inflation

How Much Your Raise Needs to Be to Beat Inflation

If you're receiving the average wage increase, which is about three percent, you might want to figure out what the inflation rate is so you'll know if you're making less or more. The annual inflation rate is 3.6 percent, flat from the previous year, reports the Wall Street Journal. This means a 0.6 percent pay cut if you're getting the average raise. Although this might not sound like much, you might be upset about the principle of the matter. After all, you would want to see your pay going up and up, and not down.

In comparison to CEO pay, the big shots have seen increases in their salaries, with an increase of 11 percent from 2009 to 2010. Keep in mind that these heads of companies aren't making chump change — the average CEO pay at an S&P 500 company is $11.4 million. Unfair much?

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