Consumer Spending Flat in January on Inflation

Washington, DC, February 29, 2008--Consumer spending was unchanged in January for the third time in the past four months, according to the Commerce Department.

Inflation rose in January, eroding almost all the increase in personal incomes, the Commerce Department reported Friday.

Spending rose 0.4 percent, double the amount expected by economists but the 0.4 percent increase in the inflation rate offset spending.

Incomes grew 0.3 percent in January, boosted by items as stock options, bonus payments and cost-of-living increases.

With spending rising faster than incomes, the savings rate dropped into negative territory.