The Primerica Household Budget Index, which measures the purchasing power of middle-income families, fell to 98.3% in May, down 1.1% from April and 1.7% from a year ago. Gas prices remained the primary drag, rising 8.6% year-over-year in May, though that growth slowed from 11% in April. Earned income for middle-income Americans increased 0.2% month-over-month and 2.5% year-over-year. The cost of necessity items tracked by the index, including food, utilities, gas, auto insurance, and health care, was up 6.2% from a year ago, while the broader Consumer Price Index rose 4.2% over the same period.
Primerica IncThe Primerica Household Budget Index fell, indicating reduced purchasing power for middle-income families, which likely weakens demand for Primerica's financial products.