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. 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.
The June PCE price index increased 6.8 percent year-over-year (YoY), up from 6.3 percent YoY in May.
The following graph shows real Personal Consumption Expenditures (PCE) through June 2022 (2012 dollars). Note that the y-axis doesn’t start at zero to better show the change.
The dashed red lines are the quarterly levels for real PCE.
Personal income and the increase in PCE were both above expectations.