A reporter figures that Social Security's Cost Of Living Adjustment (COLA) for this year will be 0.3%. I'd say that the margin of error on this prediction is no more than a tenth of one percent.
The COLA will be determined on October 18 with the release of the September CPI-W. If that is the same as the August value, then the increase in the CPI-W from July-September 2014 to July-September 2016 will be 0.27%, which will be rounded to 0.3% to give the COLA. If the September CPI-W is higher than the August one, then about one-third of the percentage increase will be added to the 0.27% (and if it is lower, one-third will be subtracted). Since the CPI-W normally changes only a few tenths of a percent each month, a value between 0.2% and 0.4% is likely. However, bigger changes in the CPI-W are not that rare, so values from 0 to 0.6% are still possible.
The COLA is calculated off of the wrong index. It is not a realistic index with the goods and services used by those on DIB and RIB with such a heavy slant toward medical and pharmacy. Those prices increased more than the COLA as well as rent, food and those pesky survival things.
The COLA will be determined on October 18 with the release of the September CPI-W. If that is the same as the August value, then the increase in the CPI-W from July-September 2014 to July-September 2016 will be 0.27%, which will be rounded to 0.3% to give the COLA. If the September CPI-W is higher than the August one, then about one-third of the percentage increase will be added to the 0.27% (and if it is lower, one-third will be subtracted). Since the CPI-W normally changes only a few tenths of a percent each month, a value between 0.2% and 0.4% is likely. However, bigger changes in the CPI-W are not that rare, so values from 0 to 0.6% are still possible.
ReplyDeleteThe recent 5% increase in median household income would suggest a measurable increase in cost of living is coming. If not this year, then the next.
ReplyDeleteThe COLA is calculated off of the wrong index. It is not a realistic index with the goods and services used by those on DIB and RIB with such a heavy slant toward medical and pharmacy. Those prices increased more than the COLA as well as rent, food and those pesky survival things.
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