In April, inflation eased to its lowest monthly growth in four years, while Americans' personal income and rate of savings jumped,
data released Friday by the Commerce Department's Bureau of Economic Analysis (BEA) reveal.
As measured by the BEA's Personal Consumption Expenditure (PCE) price index, prices increased 0.1% from March, as did the "core" index, which excludes the volatile food and energy categories.
Compared to the same month a year ago, April's price index is up 2.1% and its core index is 2.5% higher the slowest year-over-year growth for any month since February of 2021. Both numbers represent movement closer to the Federal Reserve's target inflation rate of 2.0%.
While inflation was somewhat lower than analysts' expectations, Americans' disposable personal income (DPI) growth was far higher.
At 0.8%, the monthly increase in current-dollar personal income is nearly three times expectations and the largest growth in four years,