Robert Peterman on purchasing power
From Primerica's CEO on measuring middle income purchasing power through the Household Budget Index · · CNBC Television
“We created the Household Budget Index which measures purchasing power and it tells a very interesting story: although inflation costs increased, purchasing power is improving because earned incomes are increasing.”
On , Robert Peterman, Executive Vice President & Chief Operating Officer at PRIMERICA INC, spoke about purchasing power during Primerica's CEO on measuring middle income purchasing power through the Household Budget Index on CNBC Television.
About Robert Peterman
In a September 2023 interview, Primerica CEO Glenn Williams discussed the company's newly created Household Budget Index, which measures the purchasing power of middle-income families. Williams stated that the index was developed to provide more precise data on purchasing power beyond perceptions. He noted that while inflation costs have increased, purchasing power is improving because earned incomes are also rising. Williams pointed out that in June 2022, the index fell to 85, representing a significant loss of purchasing power in a short period, and that middle-income families have been deficit spending, drawing from savings to cover expenses. Williams described the current financial situation for middle-income families as fragile, stating that they have a substantial gap to close to return to previous purchasing power levels. He emphasized that families need to prioritize paying down debt, particularly credit card debt with high interest rates, and that resolving these financial challenges requires a systematic, long-term approach. Williams added that the most important factor for recovery is wage growth through the labor market, but cautioned that the next six to twelve months remain a precarious period for these families.