Members of Congress are crowing about a small increase in pay for service members included in the $768 Billion Defense Appropriations Act for 2022 signed into law by President Biden. In 2022, the Soldiers, Sailors, Marines, and Airmen of the United States Armed Forces will receive a 2.7% wage increase over 2021.  This is amid concerns about rising inflation. According to the Bureau of Labor Statistics, the annual inflation rate surged to 6.8% in November which is the highest since June of 1982.  In practical terms the rate of inflation is tied to the buying power of the dollar and means in 2021, your dollar bought 6.8% less than in 2021.  For service members, this means a pay cut in 2022. They are getting a 2.7% increase in pay that will buy 6.8% less than in 2021.

The Federal Reserve sets a target inflation rate of 2% year to year but the inflation rate has increased for nine consecutive months in 2022. Supply chain problems caused by COVID lockdowns, commodity prices, wage inflation to attract workers, and demand for consumer goods are all drivers of inflation.

061117-N-6652A-005.San Diego, (Nov. 17, 2006) ñ Service members receive food baskets at the Outline Field Imperial Beach commissary. The commissary gave 60 Thanksgiving Food Baskets to service members and their families. U.S. Navy photo by Mass Communication Specialist Seaman Daisy Abonza (RELEASED BY FLEET PUBLIC AFFAIRS CENTER PACIFIC) .

Inflation Mean Service Members Pay More For Everything They Buy

For service members, the increase of the cost of goods will impact them directly in the things they buy most often.

Gas prices have increased 33%