Primerica (NYSE:) Inc., a financial services provider in North America, has reported an increase in the purchasing power of middle-income households for October. The company’s Household Budget Index (HBI™), which tracks the financial health of families earning between $30,000 and $130,000 annually, rose to 99.1%, up from 98.1% in September. This uptick suggests that despite persistent inflation concerns, these households have slightly more financial leeway.
The HBI™, which reached its peak in November 2020 at 105.1%, had previously plummeted to a post-pandemic low of 86.7% by June 2022, illustrating the significant strain inflation has placed on family budgets. Since January 2019, it’s estimated that there has been an excess spend of approximately $1,095 on essentials by these families.
Primerica CEO Glenn J. Williams highlighted the ongoing challenges of inflation, even as the index shows a positive shift in purchasing power. In response to these challenges, Primerica has adjusted the HBI™ calculation by excluding health insurance costs. The company has insured over 5.7 million lives and manages more than 2.8 million client investment accounts as of the end of 2022.
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