Is it fair to say CPI at 6% for 2021 means that not getting a nominal raise in 2022 implies a 6% paycut in real wage?
I suspect most folks on this forum are quite asset-heavy compared to the CPI basket of goods and are experiencing that 6% inflation on some fraction of their spending. A lot of money earned goes into investments well outpacing 6%, existing mortgages aren't increasing in monthly payments but the house is increasing in value, etc. The math varies tremendously across individuals, but I wouldn't be surprised if a 2% bump more than covers inflation as actually experienced by the average US software engineer.
It depends on your goals and expectations. If the things you want to purchase are being bid on by others gaining 30% per year of purchasing power, then if you are not, you have lost purchasing power relative to them.
I like to use VOO as my measure of inflation, but that is only because of the things I am interested in purchasing, specifically the land I want, but also construction costs/tuition/vacations and family events/healthcare/legal services/political donations.
In UK house price inflation is about 12-15%. If you're saving for spending on housing then that's your benchmark for investments to beat. Reportedly, RPI [Retail Price Index] is ~4-5% IIRC. Government controlled pay was frozen for everyone except MPs, AFAICT. UK gov managed to hit the poorest with a NI increase too, but at least they reduced tax on champagne (yes, really).
I suspect most folks on this forum are quite asset-heavy compared to the CPI basket of goods and are experiencing that 6% inflation on some fraction of their spending. A lot of money earned goes into investments well outpacing 6%, existing mortgages aren't increasing in monthly payments but the house is increasing in value, etc. The math varies tremendously across individuals, but I wouldn't be surprised if a 2% bump more than covers inflation as actually experienced by the average US software engineer.