Data compiled by the government via the Bureau of Labor Statistics (BLS) maintains a separate tally of inflation for people over 62. The rarely heard of index, known as the CPI-E, is a variation of the traditionally recognized CPI (Consumer Price Index), but with an emphasis on goods and services mostly used by those over 62 years of age. This past month, the recent release of the CPI-E and the CPI reveled an inflation rate of 1.3% for the CPI-E versus a 1% rate for the traditional CPI over the past year.
The modified index has actually been increasing at a faster pace of inflation over the past decade versus the CPI. The CPI-E assigns a larger weight to senior related expenses such as medical services and housing. The index was first created in 1987 when Congress directed the BLS to help identify inflationary pressures among seniors. The index represents roughly 25% of all U.S. consumers.
Source: Bureau of Labor Statistics
Disclaimer: The information published herein is provided for informational purposes only, and does not constitute an offer, solicitation, or recommendation to sell or an offer to buy securities, investment products, or investment advisory services. All information, views, opinions, and estimates are subject to change or correction without notice. Nothing contained herein constitutes financial, legal, tax, or other advice. The appropriateness of an investment or strategy will depend on an investor’s circumstances and objectives. Please consult your advisor about what is best for you.