Reply #32: Real spending falls in June despite rebates

[UpInArms]

http://www.marketwatch.com/news/story/us-inflation-gauge-runs-hotter/story.aspx?guid=%7B2E6D844E%2D2292%2D4587%2D85A2%2DC3DBA1FC18CA%7D&siteid=bnbh

WASHINGTON (MarketWatch) - Real consumer spending fell in June for the first time since February as the windfall of cash from Washington was eaten up by the worst inflation in 27 years, the Commerce Department reported Monday. Nominal spending rose 0.6%, but the increase was all due to higher prices, which rose 0.8% during the month, the most in 27 years. Real spending (which is adjusted for inflation) fell 0.2% in June. Real disposable incomes fell 2.6% in June after a 5.2% gain in May. Inflation surged in June. The personal consumption expenditure price index rose 0.8% in June compared with May and is up 4.1% in the past year, the largest year-over-year inflation in 17 years.