Real US Household Income Increases for First Time in Four Years

US households’ inflation-adjusted incomes rose last year for the first time since 2019, yet they still have not fully recovered to pre-pandemic levels.

The median income increased 4% last year to $80,610, according to the Census Bureau’s annual report on income, poverty and health insurance coverage. The gain reflected a moderation in inflation that in 2022 reached a four-decade high. Even so, median incomes were $600 below where they were four years earlier.

While price pressures have moderated, the costs of everything from grocery items to housing and car insurance are much higher than they were before the pandemic. That ...