Incomes see first drop in two years

Unusually large bonuses and exercised stock options cause U.S. incomes to fall 0.1 percent in April, government report says.
June 1 2007: 10:16 AM EDT
WASHINGTON (Reuters) -- U.S. incomes fell surprisingly by 0.1 percent in April, the first drop in almost two years, but core consumer prices - a key measure of inflation - inched up a less-than-expected 0.1 percent, a Commerce Department report showed Friday.
A key inflation measure in the report fell in the Federal Reserve's believed comfort zone for the first time since March 2006.


The first decline in incomes since August 2005 came on a decline in wages and salaries after unusually large bonuses and exercising of stock options during the first three months of the year, the government said.
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