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“Disposable personal income (DPI) increased $63.2 billion (0.4 percent),  and personal consumption expenditures (PCE) increased $27.8 billion (0.2 percent),”  the Bureau of Economic Analysis reported in its Personal Income and Outlays report for May 2018. With this monthly increase, the annual core-PCE price index rose to 2% to meet the Federal Reserve’s inflation target.

Key takeaways from the official publication

  • Personal income increased $60.0 billion (0.4 percent) in May.
  • The increase in personal income in May primarily reflected increases in wages and salaries, personal dividend income, and nonfarm proprietors’ income.
  • the $1.4 billion decrease in real PCE in May reflected a decrease in spending for services that was partially offset by an increase in spending for goods.