A measure of poverty tracked by the Census Bureau rose in 2022, as COVID era benefits expired and average income fell, according to a Tuesday report.
Why it matters: Child poverty saw a sharp increase in 2022 following a record low the year prior.
Driving the news: While the official poverty rate (considered an outdated measure) didn’t see a significant change from 2021 to 2022, the supplemental poverty measure (SPM), which takes government aid into account, saw a sharp increase.
State of play: The poverty rate went up because most pandemic-era support systems went away.
Threat level: The SPM child poverty rate more than doubled from 2021, up to 12.4% in 2022 from 5.2% in 2021.
Our thought bubble, from Axios’ Emily Peck: The historic increase in the supplemental poverty measure, almost all attributable to the pullback in government aid like the Child Tax Credit, is a sign of how much power policymakers have to significantly impact the poverty rate, particularly among children.
Meanwhile, median household income fell by 2.3% from 2021 to 2022, adjusting for inflation.
Inflation rose 7.8% — the largest annual increase in cost-of-living adjustments since 1981, per the Census Bureau.