Inflation spiked 5.4% in July after the same amount in june. Many economists (and most of the American people, according to polling by Harvard/HarrisX) say that continued government spending would spike inflation even higher. Because of inflation, a $50,000 nest egg lost almost $2,000 of purchasing power in the past seven months alone. Average weekly earnings since January are up $15.59, The Wall Street Journal reported recently. But due to the ravages of inflation, real weekly wages actually fell by $8.99, the largest real-dollar drop in wages since the Bureau of Labor Statistics began collecting this data in 2006.