For Social Security recipients looking for an upward cost-of-living adjustment (COLA) in 2012 monthly payments, last month’s consumer price index (CPI) may provide a clue as to how this year’s third quarter will wind up, observes Grumpy Editor.
Figures from July, August and September will be averaged out to determine the COLA for next year.
As the Social Security Administration explains it: “The Social Security Act provides for an automatic increase in Social Security and SSI benefits if there is an increase in the consumer price index for urban wage earners and clerical workers (CPI-W) from the third quarter of the last year a cost-of-living adjustment (COLA) was determined to the third quarter of the current year.”
So it’s interesting to note that Friday-released consumer prices, as tallied by the Bureau of Labor Statistics (BLS) fell 0.2 percent in June from a month earlier for the first time in a year.
“Lower Inflation in June” proclaims headlines in newspapers and in broadcast reports.
However, less emphasized: Excluding volatile fuel and food costs, core inflation rose 0.3 percent, making it the second straight monthly gain and the largest back-to-back increase since summer, 2008.
Watchful Social Security recipients will be focusing attention on the July CPI tally from BLS, due to be announced on Aug. 18, followed by August figures on Sept. 15 and September numbers on Oct. 19.
Four months ago, Social Security trustees projected a 1.2 percent COLA for senior recipients while President Barack Obama envisioned under one percent (0.9 percent, to be exact).
so are we getting a raise? if so much
Posted by: A Facebook User | August 26, 2011 at 01:51 PM