Primerica: Middle-income purchasing power falls in September as energy costs rise
PRI•Primerica's Household Budget Index fell 0.6% in September to 100%, while purchasing power was down 0.4% year over year. Necessity costs rose 4.5% annually, outpacing income growth of 3.3% and CPI inflation of 3.7%.
1. Purchasing power declines
Primerica's Household Budget Index fell 0.6% in September to 100%, signaling weaker purchasing power for middle-income Americans. Purchasing power declined 0.4% from a year earlier, primarily driven by sharply higher gasoline and home heating fuel costs.
2. Costs outpace income
Necessity costs rose 4.5% year over year, compared with a 3.7% increase in the Consumer Price Index. Average earned income increased 0.2% month over month and 3.3% annually.
