Washington, DC, October 31, 2005--Incomes bounced higher in September on the impact of destructive hurricanes, according to a Commerce Department report.
Incomes rose 1.7% in September after plunging a revised 0.9% in August. Excluding the impact of uninsured losses on property owners, however, incomes rose 0.5% in September after rising 0.3% in August.
Meanwhile, prices soared on higher energy prices. The personal consumption expenditure price index rose 0.9% in September, the biggest increase since February 1981.
Excluding food and energy prices, however, the core PCE price index rose a more moderate 0.2%. Adjusted for inflation, real spending fell 0.4% in September after dropping 1% in August.
