Market Updates
Household Spending In April Rises, Wage Gains Lag Inflation
Brian Turner
27 May, 2022
New York City
The latest measure of personal consumption and income in April showed that the inflation may be cooling off.
Personal income in April increased 0.4% or $89.3 billion in April, according to estimates released today by the Bureau of Economic Analysis.
Disposable personal income increased 0.3% or $48.3 billion and personal consumption expenditures increased 0.9% or $152.3 billion.
PCE in current dollars increased 1.4% in March.
Household consumption increased for the fourth month in a row but disposable income after adjusting for inflation was nearly flat indicating consumers are dipping in savings.
Real DPI increased less than 0.1% in April and Real PCE increased 0.7%; goods increased 1.0% and services increased 0.5 percent.
The PCE price index increased 0.2% and excluding food and energy, the PCE price index increased 0.3%.
From a year ago, the PCE price index, the preferred measure of inflation, slowed to a 6.3% increase after rising at 6.6% in March.
The PCE index excluding food and energy rose 4.9% in April after rising at 5.2% in March.
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