UpInArms
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Thu May-01-08 08:22 AM
Response to Reply #2 |
38. Income gains eroded by inflation in March |
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http://www.marketwatch.com/news/story/income-gains-eroded-inflation-march/story.aspx?guid=%7B2A365B33%2D49FD%2D42DD%2D88EC%2DC18349BC09FB%7DWASHINGTON (MarketWatch) -- Higher prices took away all the income gains U.S. households received in March, the Commerce Department estimated Thursday.
Consumer prices rose 0.3% during the month, matching the 0.3% rise in incomes that was expected by economists surveyed by MarketWatch. See Economic Calendar. Real disposable incomes were unchanged in March after accounting for taxes and inflation. Real disposable incomes are up 0.9% in the past year. Read the full report.
Consumer spending increased 0.4%, or just 0.1% after adjusting for rising prices. Economists expected a 0.3% rise in spending.
The report on personal incomes fleshes out monthly details contained in the quarterly report on gross domestic product released on Wednesday. That report showed consumer spending rose at the slowest pace in seven years during the first three months of the year. See full story.
Inflation accelerated during March, pushed by higher prices for services and nondurable goods, such as food and energy. Core prices -- which exclude food and energy -- rose 0.2%, a tick higher than expected.
For the past year, consumer prices have risen 3.2%, the slowest year-over-year gain since October. Core prices are up 2.1%, just ahead of the Federal Reserve's target zone.
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