Prices for brand name prescription drugs most frequently used by people 50 and older continue to increase faster than inflation, according to a new study released last week by the AARP.

According to the study: “Prices rose 3.4 percent during the three-month period ending March 31, 2004 compared to a 1.2 percent rate of general inflation for the same period. The average annual rate of increase rose from 6.9 percent for the 12 months ending December 2003 to 7.2 percent for the 12 months ending March 2004.”

“Since at least 2000, drug prices have risen steadily. The first three months of 2004 looks like more of the same,” said AARP Board Member Doug Holbrook. “This is an outrage.”

The report, “Trends in Manufacturer Prices of Brand Name Prescription Drugs Used by Older Americans-First Quarter 2004 Update”, is the first quarterly update in an ongoing study of changes in prices that drug manufacturers charge wholesalers, the group said in a statement posted on its web site.

A baseline study published in May 2004 looked at prices between 2000 and 2003 and found manufacturers’ wholesale prices, on average, had steadily increased and, for each year, exceeded the rate of general inflation. Researchers are focusing on manufacturers’ price to wholesalers because it is the most substantial component of a prescription drug’s retail price.

AARP is a nonprofit organization “dedicated to making life better for people 50 and over.”.

(via AARP)