April 12-month consumer inflation hit 3.8%; disposable income, savings drop - UPI.com

Traders work on the floor of the New York Stock Exchange on Wall Street on Tuesday in New York City. The annual inflation rate for the year ending in April climbed to 3.8%, up 0.4% on a month-to-month basis, the Bureau of Economic Analysis reported Thursday. Photo by John Angelillo/UPI | License Photo

May 28 (UPI) -- The annual inflation rate for the year ending in April climbed to 3.8%, up 0.4% on a month-to-month basis, the Bureau of Economic Analysis reported Thursday.

Personal consumption expenditures, the Federal Reserve's favored economic measure of inflation, increased by 0.5% or $111.1 billion. The Commerce Department said the current-dollar increase reflected a $67.2 billion increase in spending on services and a $44 billion increase in spending on goods by consumers.

Personal income in the United States decreased by less than 0.1%, or about $100 million, in April. Disposable personal income also decreased about 0.1%, or $19.9 billion.

The personal saving rate, the disposable income consumers save after paying taxes, dropped to 2.6%, the lowest rate since June 2022.