by Calculated Risk on 8/26/2022 08:36:00 AM

The BEA released the Personal Income and Outlays report for July:

Personal income increased $47.0 billion (0.2 percent) in July, according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $37.6 billion (0.2 percent) and personal consumption expenditures (PCE) increased $23.7 billion (0.1 percent).

The PCE price index decreased 0.1 percent. Excluding food and energy, the PCE price index increased 0.1 percent. Real DPI increased 0.3 percent in July and real PCE increased 0.2 percent; goods increased 0.2 percent and services increased 0.2 percent.
emphasis added

The July PCE price index increased 6.3 percent year-over-year (YoY), down from 6.8 percent YoY in June.

The PCE price index, excluding food and energy, increased 4.6 percent YoY, down from 4.8% in June.

The following graph shows real Personal Consumption Expenditures (PCE) through July 2022 (2012 dollars). Note that the y-axis doesn't start at zero to better show the change.

Click on graph for larger image.

The dashed red lines are the quarterly levels for real PCE.

Personal income and PCE were below expectations.

Inflation was lower than expected.