Inflation may be down for the first time in years, but try telling that to seniors and retirees.

US consumer prices fell in June for the first time since the early months of the pandemic. Consumer prices dipped 0.1% on a monthly basis, bringing the annual rate of inflation to 3% from 3.3% in May, according to the Bureau of Labor Statistics’ latest Consumer Price Index report.

However, prices for items such as shelter, electricity, hospital, and outpatient medical services — major expenses for millions of seniors — continue to outpace the overall rate of inflation.

“Prices are coming down, but the things that seniors are spending on are going up,” Mary Johnson, a Social Security and Medicare policy analyst, told Yahoo Finance. “This is clearly causing distress.”

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This summer’s record-breaking heat means record-breaking electrical bills for many people, Johnson said, which can be a heavy burden for retirees and others on fixed incomes.

Electricity costs have risen 4.4% from a year ago. Meanwhile, more than 138 million Americans were under heat warnings this week, and reports of heat-related deaths are rising. In Santa Clara County, Calif., there were 14 deaths being investigated as heat-related — eight of the victims were over 65.

“The amount of electricity is going to be a huge change in seniors’ bills because they’re just not used to using that much electricity just to stay cool and to stay alive,” she said.

For seniors with health issues, medical care costs are on the rise as well. Inpatient care rose 4.5% from a year ago, while outpatient care surged 7%.

Home healthcare services have climbed 11.4% — roughly three times faster than overall inflation.

“People just don’t have enough saved for assisted living, so that in-home care is something that people have to turn to when they’ve had a hospitalization, and they need care to get back up to speed,” Johnson said. Home health nurses are often under contracts where they come in for a specified amount of time during the day, and many have a minimum of four hours.

“Those can be some very pricey costs,” she added.

Older and disabled adults may be having more difficulty getting enough protein in their diets, with the price of meats and eggs continuing to outpace overall food inflation.

While food prices rose by just 2.2%, many of the most frequently consumed proteins that older adults rely on rose much more. Pork chops, for example, were up 7.4% from last year, and the price tag on a dozen eggs popped up 10.2%.

Housing takes up to 50% of budgets

The index for rent and owners’ equivalent rent (OER) each rose 0.3% on a monthly basis, the smallest increases in these indexes since August 2021. Owners’ equivalent rent is the hypothetical rent a homeowner would pay for the same property. It’s up 5.4% year over year.

While shelter inflation is down from its peak of 8.2% reached in March of last year, many seniors feel any increase acutely given that the cost of housing takes up about 50% of their budgets.

“And you have not only the housing, but you may have real estate taxes and utility bills, homeowner’s and renter’s insurance,” Johnson added.

Bottom line: “Even though overall inflation is coming down,” she said, “the standard of living for many older households is not improving, it’s declining.”

Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist, and the author of 14 books, including “In Control at 50+: How to Succeed in The New World of Work” and “Never Too Old To Get Rich.” Follow her on X @kerryhannon.

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