WASHINGTON, DC: The US Commerce Department reported Tuesday that consumer spending rose 0.4% in June, down from 0.6% in May. Income grew 0.6% in June, versus a rise of 0.4% in May.
The report also shows that a closely watched Federal Reserve inflation index has grown 2.4% over the past year — the fastest pace since 2002. That's above the Fed's core inflation target range of 1%-2%, excluding food and energy prices.
Merrill Lynch analyst David Rosenberg called the recent increase in inflation "vivid" but predicts it won't last as economic activity slows.
US Consumer Spending Eased Back in June
News, 03 August 2006
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