U.S. Inflation Is Even Higher for Consumers Who Are Over Age 62

While U.S. consumer prices in July generally rose more than economists expected, the news was somewhat worse for people over 62.

Alexandre Tanzi

13 Aug 2020, 09:59 AM IST

U.S. Inflation Is Even Higher for Consumers Who Are Over Age 62

Senior citizens sit outside at a senior services center in Reno, Nevada, U.S. (Photographer: Patrick Mouzawak/Bloomberg)

(Bloomberg) -- While U.S. consumer prices in July generally rose more than economists expected, the news was somewhat worse for people over 62.

A separate Bureau of Labor Statistics index that tracks prices associated with older consumers climbed 1.3% last month from a year earlier, compared with 1% for the consumer price index overall in Wednesday’s inflation report. The agency this month made the data available on its website; previously it was provided only on request.

Read More: U.S. Inflation Quickened in July on Costs of Vehicles, Apparel

The index shows inflation for decades has been rising at a faster clip for seniors than for the general public. That’s because it assigns higher weights to items -- including medical services and housing -- based on their relative importance to older people.

In 1987, Congress directed the BLS to begin calculating a consumer price index for the elderly. The BLS developed the series and reconstructed it back to the early 1980s.