There’s nothing that you can explain with that fact. Inflation is a measure of dollar value in relation to goods… including goods that you don’t actually need. Simply knowing that wages outpaced inflation tells you nothing about the economic conditions of individual people.
Here’s a more detailed breakdown, which DOES emphasize the things that everyone needs:
https://www.consumeraffairs.com/finance/comparing-the-costs-of-generations.html







In California, the 2026 budget for homelessness programs is $1.7 billion. The homeless population is 181,000. This is an average of $9400 per person per year.
Note: some of these programs are for homelessness prevention meaning it helps far more people than just the 181 thousand, meaning the cost per person is actually much lower.