2018 COLA Speculation: Maybe a Good News/Bad News Story Ahead?
If CPI-W numbers in the early months of 2017 are any indication of what will happen in the July, August, and September period, the possibility of a higher Cost of Living Adjustment (COLA) for 2018 may be in the cards for Social Security recipients. CPI-W, the Consumer Price Index for urban wage earners, is the primary factor for calculating COLAs, and this factor has shown an uptick so far in 2017. April’s 1.4% jump is an example, but of course we won’t know the final calculation base until mid-October.
But what’s the bad news? Well, looking at the CPI-W from another angle, remember that it’s also an indicator of inflation. As wages go up, commodity prices also tend to rise, so the gains might erode in the long-term. Until a COLA factor more representative of the spending patterns of seniors is implemented, this good news/bad news scenario is likely to remain in effect.
Dan Caplinger provides thoughts on the COLA situation in a post on www.pantagraph.com…check it out here
Notice: The link provided above connects readers to the full content of the posted article. The URL (internet address) for this link is valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the link’s validity. Also, the opinions expressed in these postings are the viewpoints of the original source and are not explicitly endorsed by AMAC, Inc.; the AMAC Foundation, Inc.; or socialsecurityreport.org.
.