Rising costs push some retirees back to work in Durham despite easing inflation

DURHAM, N.C. (WTVD) -- Inflation cooled in June, but many consumers are still feeling the effects of higher prices on everyday necessities.

For Lawrence Peterson, 75, the rising cost of living meant ending a retirement that lasted 17 years.

"So in order for me to keep my lifestyle, I had to go back to work. That's how it's impacted my life," Peterson said.

Peterson now drives for a local transportation company. He said retirement became increasingly difficult as costs continued to rise.

"The grocery stores are outrageous. Outrageous!" he said.

Peterson said higher utility bills and other expenses have put pressure on his budget.

"You know, you've got Duke Energy raising their prices. Everything has gone up," he said.

His experience comes as the latest inflation report shows price increases slowed in June, driven in part by lower prices for gasoline, clothing and used vehicles.

According to the U.S. Department of Labor, overall prices fell 0.4% from May to June, marking the largest monthly decline in four years.

While inflation is easing, economists note that prices are still higher than they were before the recent surge in inflation, and the rate remains above the Federal Reserve's target.

Many grocery items continue to become more expensive. Beef prices are up 12%, coffee prices have risen 16% and tomatoes are up 24%, according to an ABC News report.

"Even though we see inflation cooling, that doesn't mean prices are necessarily falling," said Dr. Sarah Dickerson, a research economist at the UNC Kenan-Flagler Business School. "It just means they're rising more slowly than before."

Dickerson said consumers are still adjusting to the higher prices left behind by several years of elevated inflation.

"Consumers are still living with higher prices that recent years of inflation have left behind," she said. "That's why a lot of families are still feeling that sticker shock when they go to the grocery store."

For retirees living on fixed incomes, those higher costs often require sacrifices.

"It's hard for people who don't have a lot of discretionary income," retiree Jean Scott said. "We're retired. It's easier for us, but when the grandchildren visit, you've got to buy the expensive stuff."

Retiree Dolores Huey said dining out is one expense she and her family have cut back on.

"One thing we've always enjoyed was going to restaurants, especially in this area because there are a lot of good restaurants," Huey said. "But we've had to cut that out and cook at home."

Economists say slower inflation is a positive sign for the economy. However, they say consumers should continue watching whether wages and retirement income are keeping pace with the cost of living.

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