Survey shows 71 percent of Americans say their wages are not keeping up with inflation

A new survey conducted by Bank of America and released to CNN this week showed that 71 percent of Americans say their wages are not enough to keep up with rising inflation and the increasing cost of living.

In a major increase since the same question was asked in a February survey and only 58 percent of respondents said inflation was outpacing their earnings, almost three quarters of Americans are feeling the crunch of rising prices months later.

The Consumer Price Index showed a 40-year high 9.1 percent increase in June this year, with August not faring much better at 8.3 percent.

In spite of a strong labor market and low unemployment rates, Americans are still experiencing the crunch of inflation as the cost of housing, utilities, and groceries remains high.

While gas prices have continuously fallen in the last several weeks, the average cost per gallon in the United States still stands at $3.79, according to AAA. Overall inflation also remained higher than estimated in the month of August.

The survey also showed Americans increasingly dipping into their savings, borrowing from their 401(k) accounts, and taking other actions to keep up with the pace of inflation.

A LendingClub report published on Thursday showed a whopping 60 percent of Americans are currently living paycheck to paycheck. The same report showed 45 percent of people earning six figures are living paycheck to paycheck right now. 

In an effort to curb inflation, the Federal Reserve has raised interest rates, and has warned of further increases in the near future.