"Inflation continues to erode households' purchasing power as real disposable income fell for a seventh straight month," said Lydia Boussour, Lead U.S. "U.S. consumers will face hard choices in the coming months as surging prices of non-discretionary items such as food, energy, and shelter pressure their budgets and lead them to pare back some purchases and dip into their savings," Boussour said. She added, "But robust labor income growth, record levels of household wealth, and ample excess savings worth 13% of GDP mean that consumer spending should remain well supported."