The Need for a Separate Consumer Price Index for Older Persons A Review and New Evidence

Abstract

For some time there has been debate concerning the need for a separate consumer price index for the elderly. Using weights derived from the 1972-1973 Consumer Expenditure Survey, it appears that prices increased approximately 4% faster for older people than measured by the CPI currently in use. In view of the importance of accurate price experience measurement for pension adjustment purposes, these findings suggest the need for a more thorough analysis of the issue by the Bureau of Labor Statistics.