Calculated Risk has a nice post on the rise in the CPI-W, the measure of inflation used to calculate Social Security COLAs. After several years in which the CPI remained below its historical high, meaning that no COLAs would be paid, a surge in prices over the past year -- presumably driven on the food and energy sides -- means that a COLA is likely to be paid in January, 2012. Here's a nice chart showing the CPI, marking the points where COLAs were calculated.
The bad news: this also means that Medicare Part B premiums will go up, since for most people they can't rise in years without a COLA. Also, the maximum taxable wage -- currently $106,800 -- will rise as well. Check out Calculated Risk's post here.
Thursday, June 16, 2011
Looks like you're going to get a COLA this year
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The sharp rise, along with news of some prices falling, suggests we may have to whole "where's my COLA" issue back again in the following year.
By the way, 2010 is a typo? should be 2012?
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