WASHINGTON (MarketWatch) — Real disposable income declined in February as consumer prices jumped by the largest amount in 2 1/2 years, the Commerce Department reported Monday.
Economists said the data show that higher prices for gasoline is starting to take some of the steam out of the economy. The personal consumption expenditure index, which Federal Reserve officials say is a more accurate gauge of inflation than the better-known consumer price index, increased 0.4% on the month, the largest monthly gain since July 2008.
The core rate of inflation, which excludes food and energy prices, rose 0.2% for the second straight month, as January’s reading was revised higher.
