Primerica's HBI™ Dips as Gas Prices Squeeze Middle-Income Families — Primerica, Inc.

Event summary

Primerica's Household Budget Index™ (HBI™) fell to 98.3% in May, down 1.1% from April and 1.7% year-over-year.
Gas prices rose 8.6% month-over-month, slowing from an 11% increase in April but remaining the primary driver of declining purchasing power.
Earned income for middle-income Americans increased 0.2% month-over-month and 2.5% year-over-year.
The cost of necessity items (food, utilities, gas, auto insurance, health care) rose 6.2% from a year ago, outpacing the broader CPI increase of 4.2%.
Primerica's HBI™ metric tracks the purchasing power of middle-income families with household incomes between $30,000 and $130,000.

The big picture

Primerica's HBI™ highlights the persistent financial strain on middle-income families, who account for over 55% of the U.S. population and play a crucial role in driving consumer spending. The data underscores the disconnect between broader economic metrics like the CPI and the real-world financial pressures faced by this demographic. As Primerica continues to track these trends, the insights could influence its product offerings and advisory services tailored to middle-income households.

What we're watching

Inflation Dynamics: Whether the slowdown in gas price growth will continue to alleviate pressure on middle-income households' purchasing power.
Wage Growth: How sustained wage growth of 2.5% year-over-year will offset rising costs of necessities for middle-income families.
Consumer Confidence: The pace at which improving economic indicators translate into increased consumer spending and financial security for middle-income households.