By Greg Robb
WASHINGTON (MarketWatch) -- Consumer spending outpaced income growth in June, the Commerce Department reported Friday. Consumer spending rose 0.5% in June, in line with expectations. Personal income rose 0.3%, below economists forecasts of a 0.5% gain. The savings rate fell to 4.4% from 4.6% in May. Excluding inflation, real disposable incomes fell 0.1% in June after rising 0.2% in May. Real spending was up 0.1%. Inflation stopped falling in June. The personal consumption expenditure price index rose 0.4% in June compared with May. As a result, inflation over the past year ticked up to 1.3% in June from 1.1% in May. The core rate rose 0.2% in June. Over the past 12 months, core inflation in June is up 1.2% for the third straight month.
