U.S. Household Incomes: A 50+ Year Perspective
This month, the Census Bureau released its annual report on household income data for 2022. Last year the median (middle) average household income fell by 2.3% to $74,580. Let's take a closer look at the quintile averages, which dates from 1967, along with the statistics for the top 5%.
The chart below adjusts for inflation in chained 2022 dollars using a research variant of the Consumer Price Index, the CPI-U-RS, which is the Census Bureau's preferred deflator for inflation adjustment. In other words, the incomes in earlier years have been adjusted upward to the purchasing power of the most recent year in the series.