Bureau of Economic Analysis Alert! A review of Personal Income and Outlays, June 2022: From the preceding month, the PCE price index for June increased 1.0 percent. Prices for goods increased 1.5 percent and prices for services increased 0.6 percent.

Bureau of Economic Analysis Alert! A review of Personal Income and Outlays, June 2022: From the preceding month, the PCE price index for June increased 1.0 percent. Prices for goods increased 1.5 percent and prices for services increased 0.6 percent. PCE is the inflation measure the Fed acts from.

Source

Personal Income and Outlays, June 2022

Personal income increased $133.5 billion (0.6 percent) in June, according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $120.4 billion (0.7 percent) and personal consumption expenditures (PCE) increased $181.1 billion (1.1 percent).

The PCE price index increased 1.0 percent. Excluding food and energy, the PCE price index increased 0.6 percent (table 9). Real DPI decreased 0.3 percent in June and real PCE increased 0.1 percent; goods increased 0.1 percent and services increased 0.1 percent.

Current-Dollar Measures

The increase in current-dollar personal income in June primarily reflected increases in compensation (led by private wages and salaries) and proprietors' income. Other current transfer receipts increased $12.9 billion in June, reflecting a legal settlement from corporate business to persons. The national income and product accounts record these settlements on an accrual basis in the month when the settlement is reached, regardless of when they are recorded on companies’ financial statements.

The $181.1 billion increase in current-dollar PCE in June reflected an increase of $94.9 billion in spending for goods and an increase of $86.2 billion in spending for services. Within goods, gasoline and other energy goods was the leading contributor to the increase. Within services, the largest contributors to the increase were spending for health care and for housing and utilities (mainly housing).

Personal outlays increased $186.5 billion in June. Personal saving was $944.5 billion in June and the personal saving rate—personal saving as a percentage of disposable personal income—was 5.1 percent.

Prices

From the preceding month, the PCE price index for June increased 1.0 percent. Prices for goods increased 1.5 percent and prices for services increased 0.6 percent. Food prices increased 1.0 percent and energy prices increased 7.5 percent. Excluding food and energy, the PCE price index increased 0.6 percent.From the same month one year ago, the PCE price index for June increased 6.8 percent. Prices for goods increased 10.4 percent and prices for services increased 4.9 percent. Food prices increased 11.2 percent and energy prices increased 43.5 percent. Excluding food and energy, the PCE price index increased 4.8 percent from one year ago.

Real PCE

The 0.1 percent increase in real PCE in June reflected an increase of 0.1 percent in spending on goods and an increase of 0.1 percent in spending on services. Within goods, an increase in durable goods (led by motor vehicles and parts) was partly offset by a decrease in nondurable goods (led by food and beverages). Within services, increases in health care, food services and accommodations, and "other" services (led by international travel), were the leading contributors.

In the background, the purchasing power of the $1 continues to be destroyed:

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