The US wage growth gap is historically wide: After-tax wages for higher-income households rose +5.6% YoY in March on a 3-month moving average basis, the highest in at least 3 years. At the same time, lower-income earners saw their wages grow just+1.0% YoY, near the lowest in at least 3 years. This marks the widest gap between the highest and lowest earners since data began in 2015. By comparison, middle-income wages grew +2.0% YoY last month, near the lowest since mid-2024. Meanwhile, US CPI inflation jumped +3.3% YoY in March, meaning lower and middle-income households are seeing their real wages decline. In other words, inflation is eating all of the wage gains for the bottom two-thirds of American households. Asset owners are the only winners.(The Kobeissi Letter)