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Median household income fell 7.3 percent in recession

Posted: April 5, 2013 3:48 p.m.
Updated: April 5, 2013 3:48 p.m.
 

 

Median annual income fell by a statistically significant amount in February, according to a "Trends in Household Income" report prepared by Maryland-based research firm Sentier Research.

Adjusted for inflation, the median annual household income in February of $51,404 was about 1.1 percent lower than January 2013.

The latest decline in real income reflects a 0.7 percent increase in consumer prices between the two months, Sentier reported.

While inflation remained low throughout the recession, income growth is weak enough that any hike in consumer prices is erasing any pay gains in household income.

Over the course of the past four years, however, the loss of median annual income was more pronounced.

February’s median annual household income of $51,404 was 5.6 percent than the median $54,437 in June 2009 – the date that marked the end of the recession and beginning of the "economic recovery."

And, the February median was 7.3 percent lower than the median of $55,438 in December 2007 – when the Great Recession officially began, Sentier reported.

Going even further back, February’s median of $51,404 was 8.4 percent lower than the median of $56,101 in January 2000 – showing "how much ground needs to be recovered to return to income levels that existed more than 10 years ago," the firm reported.

Sentier Research is run by former Census Bureau officials.

 

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