Primerica's HBI™ Shows Slight Purchasing Power Gain for Middle-Income Americans in August
Event summary
- Primerica's Household Budget Index™ (HBI™) rose to 100.6% in August, up 0.1% from July and 0.4% year-over-year.
- Average earned income increased 0.3% month-over-month and 3.3% year-over-year.
- Consumer Price Index (CPI) for middle-income necessity items rose 3.7% year-over-year, outpacing overall CPI growth of 3.4%.
- HBI™ now includes auto insurance costs as part of its necessity items basket.
The big picture
Primerica's HBI™ provides a specialized view of middle-income household economics, revealing that while purchasing power saw modest improvement in August, necessity item inflation continues to outpace wage growth. This metric is particularly relevant as middle-income households drive over 55% of U.S. consumer spending. The inclusion of auto insurance costs in the index reflects Primerica's focus on tracking the most relevant expenses for its core customer base.
What we're watching
- Inflation Dynamics
- Whether the gap between necessity item inflation and wage growth will widen, affecting middle-income purchasing power.
- Economic Indicators
- How future HBI™ readings will correlate with broader economic metrics and Federal Reserve policy decisions.
- Product Strategy
- The pace at which Primerica will adapt its financial products to address evolving middle-income household needs.
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