Reflecting the inflation in the economy, most of the 8.4 percent increase in median family income ($12,050) from 1972 to 1973 was eroded by rising prices; however, the net gain in real purchasing power was still statistically significant. After adjusting for the 6.2 percent rise in prices during this period, the 1973 median income increased by 2.1 percent over the 1972 median expressed in terms of constant dollars. The data in this report cover the period up through calendar year 1973; thus the report does not reflect the substantially increased inflationary pressures of 1974.

Of the 55.1 million families (including families with civilian or military heads) in the United States as of March 1974, 5.1 million, or 9.3 percent received incomes of $25,000 or more in 1973. There were 14.4 million families (26.2 percent) with incomes between $15,000 and $25,000; 14.1 million families (25.5 percent) with incomes between $10,000 and $15,000; 13.4 million families (24.3 percent) with incomes between $5,000 and $10,000; and 8.1 million families (14.6 percent) with incomes less than $5,000 in 1973.

Both the increase in the number of families and in money income between 1972 and 1973 contributed to the growth in aggregate family income. Aggregate family income increased by 9.2 percent between 1972 and 1973, stemming from a 1.3 percent increase in the number of families (680 thousand net additional families) and a 7.9 percent increase in mean income per family.