WASHINGTON, July 30 (Xinhua) -- U.S. personal income increased 0.4 percent in June while inflation remained below the target set by the Federal Reserve, the U.S. Department of Commerce said on Tuesday.
Personal income in the United States increased 83.6 billion U.S. dollars in June, while disposable personal income increased 69.7 billion dollars, both 0.4 percent higher month-on-month, according to a monthly report released by the Bureau of Economic Analysis of the department.
Personal consumption expenditures (PCE), a measure of household spending, were up 41 billion dollars in June, said the report.
The PCE price index increased 0.1 percent month-on-month in June. Excluding the volatile food and energy prices, the core PCE price index increased 0.2 percent.
On a year-on-year basis, the core PCE price index, a preferred inflation gauge by the Fed, was up 1.6 percent in June, below the central bank's target inflation rate of 2 percent.
The Fed's rate-setting Federal Open Market Committee will convene its policy meeting Tuesday through Wednesday, and the market is pricing in a 100 percent chance of a rate cut during the meeting.
The Commerce Department's data also showed that personal savings were 1.34 trillion dollars in June. The personal savings rate, or personal savings as a percentage of disposable personal income, was 8.1 percent.
The report also revealed revisions to personal income data in the last five years.
The figures for 2014, 2015 and 2016 were all revised down but the changes were all less than one-tenth of a percentage point. The 2017 reading was revised up 0.3 percent while that of 2018 was revised up 1.4 percent.