It's All Greek To Me... But I Think This Is Good News ???

[WillyT]

Early Look: 2012 Social Security Cost-Of-Living Adjustment on track for 3.5% increase
by CalculatedRisk
9/15/2011 03:43:00 PM

<snip>

The BLS reported this morning: "The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 4.3 percent over the last 12 months to an index level of 223.326 (1982-84=100)."

CPI-W is the index that is used to calculate the Cost-Of-Living Adjustments (COLA). Here is an explanation (much of the following is a repeat from a previous post updated with current data):

The calculation dates have changed over time (see Cost-of-Living Adjustments), but the current calculation uses the average CPI-W for the three months in Q3 (July, August, September) and compares to the average for the highest previous average of Q3 months. Note: this is not the headline CPI-U, and not seasonally adjusted.

<snip>



Link: http://www.calculatedriskblog.com/2011/09/early-look-2012-social-security-cost-of.html

:shrug:

[msanthrope]

1. Not through Q3 yet. But a 3.5% increase would be good news. nt

[global1]

2. Why Would Someone Unrecommend This Thread......nt

[WillyT]

3. Because We Have Moved From Unreccing The Post, To Unreccing The Poster...

Ah well...

:hi:

[Oldtimeralso]

4. K & R #5

and OTG from one affected soul

[toddwv]

5. That depends.

Unfortunately for most on SS, the CPI completely ignores any increases in food and energy costs. So while food and energy prices could (and have) go up by double digits, the CPI itself only sees a relatively low single digit increase.

I think that the CoL should be about 5% at least to adjust for no increase last year.