Americans saw both their average nominal and inflation-adjusted income per capita rise for the first time since February in July 2022.
Political Calculations' initial estimate of the average per capita income of Americans in July 2022 is $34,400, a $330 (or nearly 1%) increase from June 2022's estimate of $34,030. The following chart tracking the average individual earned income during the Biden era shows the increase in both nominal and inflation-adjusted terms.
In terms of constant July 2022 U.S. dollars, July 2022's average per capita income of $34,400 falls $502 below December 2021's peak of $34,902. By contrast, nominal average per capita income increased by $1,557 since the end of 2021. That difference means that all of the nominal gain in the average wage and salary income earned by Americans was entirely eroded by inflation during 2022.
We'll be looking at the latest update to the trends for median household income through July 2022 tomorrow.
References
U.S. Bureau of Economic Analysis. Table 2.6. Personal Income and Its Disposition, Monthly, Personal Income and Outlays, Not Seasonally Adjusted, Monthly, Middle of Month. Population. [Online Database (via Federal Reserve Economic Data)]. Last Updated: 26 August 2022. Accessed: 26 August 2022.
U.S. Bureau of Economic Analysis. Table 2.6. Personal Income and Its Disposition, Monthly, Personal Income and Outlays, Not Seasonally Adjusted, Monthly, Middle of Month. Compensation of Employees, Received: Wage and Salary Disbursements. [Online Database (via Federal Reserve Economic Data)]. Last Updated: 26 August 2022. Accessed: 26 August 2022.
U.S. Department of Labor Bureau of Labor Statistics. Consumer Price Index, All Urban Consumers - (CPI-U), U.S. City Average, All Items, 1982-84=100. [Online Database (via Federal Reserve Economic Data)]. Last Updated: 10 August 2022. Accessed: 10 August 2022.