Inflation contributes to declining income and increasing poverty in the United States

The US Census Bureau announced that inflation caused a decline in real income by 2.3% in the United States in 2022 despite raising wages, while poverty increased with the cessation of government aid, which was provided during the Corona pandemic.

Liana Fox, a Census Bureau official, explained during an online press conference that “high inflation led to a decline in real average family income,” which amounted to $47,960.

The official poverty rate remained stable compared to last year, at 11.5%, or 37.9 million people, living on less than $14,880 annually, or $29,950 for a family of four.

But another measurement showed a completely different truth. This measure, also published by the Census Bureau, adjusts the income below which a person is considered poor, taking into account government assistance and the cost of child care and medical expenses.

According to this measure, the poverty rate rose for the first time since 2010, increasing from 7.8% to 12.4% between 2021 and 2022.

The child poverty rate doubled, rising to 12.4%, while it was 5.2% in 2021, a historic low.