While you were chilling out in January, 2023 inflation was hot.  Look. 

Key Fed inflation measure rose 0.6% in January, more than expected

Okay, maybe you shouldn't have looked, but certainly, while you were out there greeting 2023, buying such luxuries as food, you may have noticed something about personal consumption expenditures (PCE) — and yeah, sigh, I know, but that's what economists and the U.S. government call stuff like that.

Now look what else the U.S. government official figures, in this case the Bureau of Economic Analysis (BEA), officially reported.

Personal Income and Outlays, January 2023

Personal income increased $131.1 billion (0.6 percent) in January, according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $387.4 billion (2.0 percent) and personal consumption expenditures (PCE) increased $312.5 billion (1.8 percent).

The PCE price index increased 0.6 percent in January. Excluding food and energy, the PCE price index also increased 0.6 percent (table 9). Real DPI increased 1.4 percent and Real PCE increased 1.1 percent; goods increased 2.2 percent and services increased 0.6 percent (tables 5 and 7). (snip)

Prices

From the preceding month, the PCE price index for January increased 0.6 percent (table 9). Prices for goods and services both increased 0.6 percent as well. Food prices increased 0.4 percent and energy prices increased 2.0 percent. Excluding food and energy, the PCE price index also increased 0.6 percent. Detailed monthly PCE price indexes can be found on Table 2.4.4U.

From the same month one year ago, the PCE price index for January increased 5.4 percent (table 11). Prices for goods increased 4.7 percent and prices for services increased 5.7 percent. Food prices increased 11.1 percent and energy prices increased 9.6 percent. Excluding food and energy, the PCE price index increased 4.7 percent from one year ago.

Oh.  Prices for essentials are up more than expected, but personal income, while also up, was way behind.  Uh, ewwwww!

Other than that, enjoy your weekend.

Image: Gage Skidmore via Flickr, CC BY-SA 2.0.