Living in Seattle in ‘survival mode’ as inflation remains high

“The higher cost of items in the grocery store can be somewhat explained by the fact wages are higher,” said James McCafferty, co-director of Western Washington University’s Center for Economic and Business Research. Grocery stores know that people can afford higher prices in Seattle. They also have to pay higher minimum wage, among other expenses.

Wages vs. inflation

Despite high inflation, local wage data indicates that earnings are rising just as fast as prices — at least, on average.

Hourly earnings rose 6.8% in the 12-month period ending in April 2026 in Seattle, Tacoma and Bellevue, which outpaces the 4.9% inflation recorded in the same period and region, according to the latest employment data from the Bureau of Labor Statistics.

“You want wages to at least keep up with inflation,” said Hart Hodges, an economics professor at Western Washington University. “Otherwise people are falling behind.”