From Sentier Research
According to new data derived from the monthly Current Population Survey (CPS), median annual household income in February 2016 was $57,129, not significantly different from the January 2016 median of $57,192. The Sentier Household Income Index for February 2016 was 99.7 (January 2000 = 100), 0.1 percentage point lower than last month. Median income remains slightly lower than the January 2000 level after adjusting for changes in prices.
There has been a general upward trend in median household income since the postrecession low point reached in August 2011.This upward trend was initially marked by monthly movements, both up and down. Many monthly changes were not statistically significant. By the summer of 2014 however, that uneven trend became dominated by a series of significant monthly increases.
Median income in February 2016 ($57,129) was 3.7 percent higher than in February 2015 ($55,098), and 10.2 percent higher than in August 2011 ($51,857). This general upward trend reflects, in part, the low level of inflation as measured by the CPI for all items (used in this series). For example, the 3.7 percent increase in median household income between February 2015 and February 2016 derived using the CPI for all items becomes 2.3 percent when the CPI less food and energy is employed to adjust for the change in purchasing power. (See Figure 1 – full report here)
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According to Gordon Green of Sentier Research:
We continue to see an upward trend in income that has been evident since the low point in August 2011. Relatively low energy prices have contributed significantly to increases in real median household income. We have recaptured all of the income losses that have occurred since the beginning of the last 2 recession in December 2007. The February 2016 median is now only 0.3 percent lower than the median of $57,291 in January 2000, the beginning of this statistical series.
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