Primerica Household Budget Index

Middle-Income Purchasing Power Held Steady in January

Primerica, Inc. (NYSE: PRI), a leading provider of financial services and products in the United States and Canada, announced today the release of the Primerica Household Budget Index (HBI), a monthly index illustrating the purchasing power of middle-income households with income between $30,000 and $130,000. In January 2024, the average purchasing power for middle-income households was 101.6%, relatively unchanged compared to 101.7% in December 2023. A year ago, the index stood at 95.6%.

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Primerica Household Budget Index (HBI) - In January 2024, the average purchasing power for middle-income households was 101.6%, relatively unchanged compared to 101.7% in December 2023. A year ago, the index stood at 95.6%. (Graphic: Business Wire)

HBI HISTORICAL BACKGROUND

The index baseline is set at January 2019 and can be thought of as when middle-income households set a budget based on their earned income at that time. Between 2014 and 2020, the HBI results recorded steady gains in purchasing power for middle-income families, with a peak of 105.1% in November 2020. This means that relative to January 2019, households were in a stronger financial position to pay their monthly bills because wage growth outpaced the cost of everyday goods. Increasing inflation then caused the index to plummet. In June 2022, it reached a post-pandemic low of 86.7%.

Since May 2021, when the HBI dipped below 100% for the first time since the pandemic, the average middle-income household has cumulatively spent around $2,425 more than budget on basic necessities. In line with this, if the pandemic and ensuing inflation would not have been a factor, the HBI today would be closer to 110%.

For more information on the Primerica Household Budget Index, visit www.householdbudgetindex.com.

About the Primerica Household Budget Index (HBI)

The Primerica Household Budget Index (HBI) is constructed monthly on behalf of Primerica by its chief economic consultant Amy Crews Cutts, PhD, CBE. The index measures the purchasing power of middle-income families with household incomes from $30,000 to $130,000 and is developed using data from the U.S. Bureau of Labor Statistics, the US Bureau of the Census, and the Federal Reserve Bank of Kansas City. The index looks at the cost of necessities including food, gas, utilities, and health care and earned income to track differences in inflation and wage growth.