⚠️The average American worker is increasingly squeezed by inflation: Real disposable income fell -1.1% YoY in April, the largest decline since October 2022, and dropped -5.6% on an annualized MoM basis, the most since May 2025. Furthermore, real personal income excluding government transfer payments fell -0.4% MoM, the 4th monthly decline in 5 months, and has dropped -1.8% annualized over the last 6 months, the largest such decline since 2022. This metric captures after-tax income from labor and capital while excluding government support such as Social Security and unemployment benefits. Historically, this level of weakness has rarely occurred outside of a recession. Inflation is increasingly eroding the purchasing power of most Americans.