In 2022, average annual expenditures for all consumer units in the United States increased by 9.0 percent to $72,967, outpacing the 8.0 percent rise in the Consumer Price Index for All Urban Consumers (CPI-U). Average income before taxes also increased by 7.5 percent during the same period.
The breakdown of expenditures for 2022 revealed that housing accounted for the largest share at 33.3 percent, followed by transportation (16.8 percent), food (12.8 percent), personal insurance and pensions (12.0 percent), and healthcare (8.0 percent).
Among the 14 major components, the largest percentage increase in expenditures was in cash contributions (14.1 percent), followed by food (12.7 percent), personal care products and services (12.3 percent), and transportation (12.2 percent). Entertainment expenditures, however, decreased by 3.1 percent.
Specific spending patterns showed a 7.4 percent increase in housing expenditures, a 12.2 percent rise in transportation expenditures, and a 12.7 percent increase in food spending. Personal insurance and pensions spending increased by 11.0 percent, while entertainment expenditures decreased by 3.1 percent. Cash contributions saw a significant increase of 14.1 percent.
Transportation spending patterns varied by type of area, with urban consumer units experiencing a 16.6 percent increase in total transportation spending, driven by higher gasoline, other fuels, and motor oil expenditures. Rural consumer units, however, saw a 3.3 percent decrease in total transportation spending.
Expenditures by the size of the consumer unit revealed variations in spending shares, with larger units allocating a higher percentage to food and a lower percentage to housing. One-person consumer units allocated the highest shares to housing (39.4 percent), while households with five or more people allocated the lowest shares to healthcare (6.2 percent).
Lastly, income and spending by income quintile indicated that overall spending increased in all quintiles, with the third quintile experiencing the largest increase in spending (10.8 percent). Average income before taxes rose by 7.5 percent, with the fourth quintile seeing the largest increase (8.2 percent), and expenditures outpacing income in all quintiles except the lowest.
