Investing.com Purchasing power of middle-income households declines for third straight month



Early recovery reversed as staple prices continue to climb

DULUTH, Ga.–(BUSINESS WIRE)–Primerica, Inc. (NYSE: PRI), a leading provider of financial services and products in the United States and Canada, today announced the release of the Primerica (NYSE:) Home Budgeting Index™ (HBI™) , a monthly index that shows the purchasing power of middle-income households earning between $30,000 and $130,000. In March 2024, the average purchasing power of middle-income households was 100.5%, down from 101.2% in February 2024.

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Primerica Household Budget Index™ – The average purchasing power of middle-income households was 100.5% in March 2024, down from 101.2% in February 2024. December 2023.

The decline was driven by a sharp rise in the cost of essential goods, which have risen 1.3% since the beginning of the year compared with the previous quarter, driven by a 6.4% rise in natural gas prices during the same period.

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

About the Primerica Household Budget Index™ (HBI™)

The Primerica Household Budget Index™ (HBI™) is constructed by Primerica Chief Economic Advisor Amy Crews Cutts, Ph.D., CBE ® , a monthly representative for Primerica. The index measures the purchasing power of middle-income households with household incomes between $30,000 and $130,000 and is based on data from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau and the Federal Reserve Bank of Kansas City. The index looks at the cost of necessities like food, gas, utilities and health care, as well as income earned, to track differences in inflation and wage growth.

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HBI™ is expressed as a percentage. If the index is above 100%, middle-income households have stronger purchasing power than during the base period and they may have extra money at the end of the month that they can use for entertainment, additional savings, or other purposes. If it's less than 100%, households may have to reduce overall spending below budgeted levels, save less or increase debt to cover expenses. HBI™ uses January 2019 as the baseline. This timing reflects recent normal economic times before the COVID-19 pandemic.

Previous HBI™ values ​​may be revised periodically due to revisions to the CPI series and Consumer Expenditure Surveys published by the U.S. Bureau of Labor Statistics (BLS). Beginning with the release of HBI™ data in October 2023, health insurance costs will no longer be included as a health care component in the calculation of HBI™ data because the U.S. Bureau of Labor Statistics uses some newly recognized methods to calculate the health insurance CPI. The health insurance CPI calculated by the BLS does not measure the cost of health insurance to consumers, such as the cost of premiums paid or the combination of premiums and deductibles, but rather the value of premiums retained by health insurance companies, which we believe does not accurately reflect the consumer experience . The healthcare segment will continue to include medical services, prescription drugs and equipment. Previously published values ​​have been adjusted to reflect this change. For more information, visit familybudgetindex.com.

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About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, Georgia, is a leading provider of financial products and services to middle-income families in North America. Independent licensed representatives educate Primerica customers on how to better prepare for a safer life by assessing their needs and providing appropriate solutions through the term life insurance we underwrite and the mutual funds, annuities and other financial products our principal representatives distribute. Financial Future Ready Third Party. As of December 31, 2023, we insured approximately 5.7 million people and had approximately 2.9 million customer investment accounts. .

public relations
Garner Ann, 678-431-9266
gana.ahn@primerica.com

investor relations
Nicole Russell, 470-564-6663
nicole.russell@primerica.com

Source: Primerica, Inc.





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