Personal income increased $26.1 billion (0.1 percent) in June according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) decreased $2.6 billion (less than 0.1 percent) and personal consumption expenditures (PCE) increased $155.4 billion (1.0 percent). Real DPI decreased 0.5 percent in June and Real PCE increased 0.5 percent; goods decreased 0.2 percent and services increased 0.8 percent (tables 5 and 7). The PCE price index increased 0.5 percent. Excluding food and energy, the PCE price index increased 0.4 percent (table 9). The increase in personal ... (full story)

An inflation indicator that the Federal reserve uses as its key guide rose 3.5% in June, a sharp acceleration that was nonetheless right around Wall Street expectations, the Commerce Department reported Friday. The personal consumption expenditures price index excluding food and energy was expected to increase 3.6% at a time when the U.S. economy has seen higher inflation pressures than it has seen in more than a decade. That gain was slightly ahead of the 3.4% May increase and represents the biggest move since July 1991. Fed officials have said they expect the inflation surge to be temporary as it has come largely ... (full story)