What government and its central bank giveth, monetary debasement taketh away. From Wolf Richter at wolfstreet.com:
Pay More, Get Less. Spending on durable goods after inflation down 10% from historic spike. But services surged, pointing to next source of inflation.
The fly in the ointment of the most monstrously overstimulated economy ever is, it turns out, duh, inflation which is now eating into what Americans earn, and what they spend, though they’re making heroic efforts to spend.
Before inflation, personal income from all sources rose by 2.7% in July compared to a year ago, and by 1.1% for the month, to a seasonally adjusted annual rate of $17.8 trillion, according to the Bureau of Economic Analysis on Friday. This includes income from wages, stimulus payments, transfer payments (unemployment compensation, Social Security benefits, etc.), and income from other sources such as interest, dividends, and rental income.
After inflation, “real” personal income fell by 1.4% from a year ago, despite the 0.7% increase in July from June. The three spikes in the chart are a result of the three waves of stimulus payments on top of all the other layers of money that were handed out and triggered some of the biggest distortions in consumer spending ever: