Question of ACS 5 year Income

Hi Gan,
The Census Bureau adjusts monetary data in the ACS for inflation because the data are collected over a series of time (over a 12-month period for the single-year data or over a 60-month period for the five-year data). This adjustment is described in Appendix 5 of their ACS Handbook (www.census.gov/.../ACSGeneralHandbook.pdf)

"ACS income values are reported based on the amount of income received during the 12 months preceding the interview month. This is the income reference period. Since there are 12 different income reference periods throughout an interview year, 12 different income inflation adjustments are made. Monthly CPIU-RSs are used to inflation-adjust the 12 reference period incomes to a single reference period of January through December of the interview year. Note that there are no inflation adjustments for single-year estimates of rent, home value, or energy cost values."

I hope this helps.

Thanks a lot Mark, it really helps!

Thanks a lot Mark, it really helps!