Inflation has slowed, but the costs for essentials like housing and groceries continue to rise
US household income rose by 4% last year. The median income reached $80,610, marking the first increase since 2019, according to a Census Bureau report. The growth reflects easing inflation and a strong job market, although incomes remain below pre-pandemic levels.
White households saw a 5.4% income rise, while incomes for Black, Asian and Hispanic households remained flat.
The official poverty rate fell 0.4 percentage points to 11.1%, but child poverty increased to 13.7% from 12.4% in 2022.
The gender pay gap also widened, with women’s income rising by 1.5% compared to 3% for men.
Although inflation dropped from its peak of 9.1% in June 2022 to 2.9%, the costs for essentials like housing and groceries continue to rise.
Despite these challenges, the economy added thousands of jobs monthly, keeping the unemployment rate at 4.2%, which is close to historic lows.