Personal Income, Disposable Income, and Personal Consumption Expenditures All Increased in January 2022

The U.S. Bureau of Economic Analysis (BEA) reported on Friday (2-25-22) that, according to their estimates, personal income (PI) increased $9.0 billion (less than 0.1%) in January. Disposable personal income (DPI) increased $19.8 billion (0.1%) in January. Personal consumption expenditures (PCE) increased $337.2 billion (2.1%) in January.

Real DPI decreased -0.5% in January, while real PCE increased 1.5%; goods increased 0.1% and spending on services increased 0.1%. The PCE price index for January increased 0.6%. Excluding food and energy, the PCE price index for January increased 0.5%.

Year-over-year, the PCE price index for January increased 6.1%, reflecting increases in both goods and services. Energy prices increased 25.9% while food prices increased 6.7%. Excluding food and energy, the PCE price index for January increased 5.2% from one year ago.

Personal outlays increased $342.2 billion in January. Personal saving was $1.17 trillion in January and the personal saving rate—personal saving as a percentage of disposable personal income—was 6.4%.