Middle-Income Purchasing Power Stagnates as Inflation Outpaces Wages
Event summary
- Primerica's Household Budget Index™ (HBI™) remained flat at 101.4% in February 2026, unchanged from January but up 1.8% year-over-year.
- Middle-income household inflation rose to 2.9% YoY, outpacing overall CPI increase of 2.4%.
- Costs for necessity items (food, utilities, gas, auto insurance, health care) increased by 1.8% YoY.
- Primerica's HBI™ tracks purchasing power for households earning $30K–$130K using BLS and Fed data.
The big picture
Primerica's HBI™ highlights the disconnect between general inflation metrics and middle-income household economics. With over 55% of U.S. population in this income bracket, their purchasing power serves as a critical economic barometer. The data suggests financial services providers may need to adjust product offerings as households navigate tighter budgets.
What we're watching
- Energy Cost Pressures
- How rising energy costs will affect middle-income household budgets in coming months.
- Inflation-Wage Gap
- Whether wage growth can keep pace with targeted inflation measures for middle-income families.
- Consumer Spending Trends
- The pace at which stagnant purchasing power impacts broader economic activity.
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