WASHINGTON (MarketWatch) -- Personal income outpaced consumer spending in December, the Commerce Department said Thursday. Personal incomes rose a seasonally adjusted 2.6% in December, the fastest pace in eight years. The gain was much higher than economist's forecasts. Real after-tax incomes rose 2.8% in December, the largest increase since May 2008. Economists say higher income is due to one-time dividend distributions and will reverse sharply in January. Consumer spending rose 0.2% in December, in line with expectations. With incomes running faster than spending, the personal savings rate rose to 6.5% of disposable income from 4.1% in November. It was the highest savings rate since May 2009. Inflation was tame. The personal consumption expenditure index, which Federal Reserve officials say is a more accurate gauge of inflation than the better-known consumer price index, was flat on the month. In the past year, the PCE price index has risen 1.3%, well below the Fed's target of 2%.