Why Inflation’s Higher Than It Looks

An article in AOL Daily Finance explains why many retirees can’t keep up with inflation:

“Last fall, Social Security recipients got their first raise in their monthly benefit checks since 2009. Yet, if you’re like most people, watching the prices of the things you buy go up all the time makes the government’s inflation gauge seem out of touch.
But there’s a good reason why the government’s estimates don’t match up with your experience: They aren’t designed to.
Like any statistic, the Consumer Price Index, which measures inflation, is only as effective as the assumptions it makes — in this case, about what you spend money on. If you spend more on certain things than most people, then the CPI will do a terrible job of reflecting the prices you actually pay.”

Find out why and what you can do about it:



About UWF Center on Aging

The Center on Aging at the University of West Florida was established in the Fall of 2010 when the School of Psychological and Behavioral Sciences faculty along with assistance from Sponsored Research submitted a grant to the State University System Board of Governors in support of aging initiatives for Northwest Florida. Its mission is to improve the quality of life of aging adults through the application of science to address challenges associated with aging and to promote healthy aging, with an emphasis on prevention. This will be accomplished through inter-disciplinary and inter-professional efforts of basic and applied research, consultation, and partnerships with community agencies. Education and training, direct services to the aging population, and public awareness and understanding of the contributions and needs of elders will be primary objectives.
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