A preliminary estimate on the 2023 COLA - CNBC
The official Cost of Living Adjustment (COLA) for 2023 will not be released until October; early estimates are predicting even higher than 2022. The Consumer Price Index for all Urban Consumers, also known as CPI-U, has reached a new 40-year high with an increase of 7.9 percent over the past 12 months. But Social Security COLA is calculated based on another measure, the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The non-partisan senior group, The Senior Citizens League, has issued a preliminary estimate for the 2023 COLA, based on the latest Consumer Price Index data, which could be as high as 7.6 percent. So, what will this mean to individuals on Social Security? Lori Konish looks at the preliminary estimates on how high Social Security COLA for 2023 will be. Read Ms. Konish’s article here…
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I think that that the consensus of 7.6% is not realistic. The cpi-w is 8.6% which would imply that the Biden administration will curb inflation by 1% over the coming months. This isn’t realistic, in my opinion, since fuel cost are up 17% this month combined with projections of food costs matching that in the coming months. I predict 12.1%.
If this projection comes true, I will thank the Biden administration since my entire retirement comes from the federal government. This inflation rate would nullify my current federal tax liability since I’m in a 12% tax brackets.