Primerica Household Budget Index™: Middle-Income Families' Purchasing Power Surges

Middle-income families in the United States have experienced a significant boost in their purchasing power over the past few months, as indicated by the Primerica Household Budget Index™ (HBI™). The index, which measures the purchasing power of middle-income families with household incomes from $30,000 to $130,000, has been on a steady rise since April 2024. In September 2024, the average purchasing power for middle-income families reached 102.7%, up from 102.1% in August 2024, marking the fifth consecutive month of rising purchasing power. This trend suggests that middle-income families are better positioned to afford everyday expenses and may have extra money left over at the end of the month to apply to things like entertainment, extra savings, or debt reduction.

The Primerica Household Budget Index™ (HBI™) tracks changes in necessities' costs and earned income to reflect the affordability of everyday expenses for middle-income families. In September 2024, the index rose to 102.7%, indicating stronger purchasing power for these households. This upward trend can be attributed to various factors, including falling gas and utilities prices, which have significantly impacted the affordability of everyday expenses for middle-income families.


Fluctuations in gas prices have significantly impacted the Primerica Household Budget Index™ (HBI™). From August 2023 to August 2024, gas prices decreased by 20% (Number 2), contributing to the overall rise in purchasing power for middle-income families. The HBI™, which tracks changes in necessities' costs and earned income, reflected this positive trend, with the index increasing from 97.2% to 102.7% over the same period. The decrease in gas prices, along with steady food prices and falling utilities costs, has allowed middle-income families to have more disposable income, leading to the consecutive monthly increases in the HBI™.


Changes in utilities prices have also played a significant role in the Primerica Household Budget Index™ (HBI™). In September 2024, the index reached 102.7%, marking the fifth consecutive month of increased purchasing power for middle-income families. This upward trend can be attributed to various factors, including falling gas and utilities prices, which have significantly impacted the affordability of everyday expenses for middle-income families.


Variations in food prices have affected the Primerica Household Budget Index™ (HBI™) as well. In September 2024, the index rose to 102.7%, indicating stronger purchasing power for these households. Food prices, a significant component of the HBI™, have shown relative stability in recent months. Between August and September 2024, food prices increased by 0.2%, contributing to the overall rise in the HBI™. This modest increase is lower than the 0.4% and 0.6% increases seen in gas and utilities prices, respectively, during the same period. While food prices have been volatile in the past, their recent stability has positively impacted the HBI™, with middle-income families benefiting from the overall trend of rising purchasing power.


In conclusion, the Primerica Household Budget Index™ (HBI™) has shown a consistent upward trend in recent months, indicating a strengthening purchasing power for middle-income families. This trend can be attributed to favorable changes in the cost of necessities, such as falling gas and utilities prices, steady food prices, and a decline in health insurance costs. As the economy continues to improve, middle-income families may see further gains in their purchasing power, allowing them to better afford everyday expenses and improve their financial security.