Hot Air reports:
[Reuters]then manage to misreport the real DPI, which is defined by the BEA as “DPI adjusted to remove price changes,” in order to account for inflation:
When adjusted for inflation, spending nudged up 0.1 percent last month after gaining 0.1 percent in March.
No, it went down by “less than 0.1%,” not up. Inflation on all prices rose 0.3% in April, and in “core” prices by 0.2%. The overall PCE index has risen 2.2% over the last 12 months, which isn’t a bad rate of inflation if the economy was actually growing significantly.
So is tepid consumer spending holding prices down? What will inflation look like at when consumer spending takes off? Of course, that will depend upon whether or not anybody can get a job. Chances seem slim as long as Obama resides in the White House.