Inflation and Consumer Spending - July 2008

Disposable personal income (income after taxes), change from previous year:
Down to 1.2% after being up to 6% two months ago on the strength of Federal stimulus checks.

Personal consumption expenditures, change from previous year:
Down to 1.2% from a high of 6% in 2006

Prices - All items: up 4%
Prices, excluding energy and food: up 2.2%

See Graph, Wall Street Journal

Source: IndexMundi

An inflation rate of 4% will reduce the buying power of $100,000 to $80,000 in just five years.