Inflation Runs At 30-Year High
October 1, 2021
income increased $35.5 billion (0.2 percent) in August according to
estimates released today by the Bureau of Economic Analysis. Disposable
personal income (DPI) increased $18.9 billion (0.1 percent) and personal
consumption expenditures (PCE) increased $130.5 billion (0.8 percent).
Real DPI decreased 0.3 percent in August and Real PCE increased 0.4
percent; goods increased 0.6 percent and services increased 0.3 percent.
The PCE price index increased 0.4 percent. Excluding food and energy,
the PCE price index increased 0.3 percent.
The increase in personal income in August primarily reflected increases
in compensation of employees and government social benefits. Within
compensation, the increase primarily reflected an increase in private
wages and salaries. Within government social benefits, an increase in
"other" social benefits, reflecting advance Child Tax Credit payments
authorized by the American Rescue Plan, was partly offset by a decrease
in unemployment insurance, reflecting decreases in payments from the
Pandemic Unemployment Compensation program.
The $130.5 billion increase in current dollar PCE in August reflected an
increase of $66.0 billion in spending for goods and a $64.6 billion
increase in spending for services (table 3). Within goods, increases in
spending for food and beverages as well as “other” nondurable goods
(mainly, household supplies as well as recreational items) were partly
offset by a decrease in spending for motor vehicles and parts. Within
services, the increases were widespread, led by “other” services
(mainly, personal care and clothing services), housing and utilities,
and health care.
outlays increased $132.6 billion in August. Personal saving was $1.71
trillion in August and the personal saving rate—personal saving as a
percentage of disposable personal income—was 9.4 percent.
The PCE price index for August increased 4.3 percent from one year ago,
reflecting increases in both goods and services. Energy prices increased
24.9 percent and food prices increased 2.8 percent. Excluding food and
energy, the PCE price index for August increased 3.6 percent from one
Updates to Personal Income and Outlays
Estimates have been updated for April through July. Revised and
previously published changes from the preceding month for current-dollar
personal income, and for current-dollar and chained (2012) dollar DPI
and PCE, are shown below.