November saw 0.8% inflation, what does this mean for social security and COLA?
The inflation rate has hit record highs over the past year, and the reports for November are no different.
The Bureau of Labor Statistics reports that over the past year inflation has increased 6.8%.
October saw an increase of 0.9% and November saw an increase of 0.8%.
Related: 3 Major Social Security Changes In January 2022 For Retirees And Americans With Disabilities
The index for gasoline, housing, food, used vehicles and new vehicles all increased.
The elderly have suffered the most because of the cost of inflation. They were living on a fixed income, and while the costs around them rise, their income remains the same.
The Senior Citizens League, which called on Congress to send another stimulus check to seniors, reports seniors ate one meal a day and cut medications in half to get by.
Related: 5 Important Things To Know Before The COLA Increase Boosts Social Security Benefits In Just Weeks
What does inflation mean for Social Security and COLA?
Each year, the SSA uses the Consumer Price Index for urban wage earners and office workers to decide if, and to what extent, social security benefits are increasing.
They look at the rise in inflation in July, August and September to decide and announce it in October.
The new benefits come into effect in January of the following year.
Related: Here Are The Changes To Social Security In 2022
The number they have proposed for 2022 is 5.9%.
Over the past 12 months, the total increase was 6.8% for the CPI-U and 7.6% for the CPI-W.
As the rise continues, it will only exceed the 5.9% increase announced in October.
Related: 11 Major Changes For The Money Coming In 2022; Social Security, Medicare and Student Loans All Affected
Many want to know if the SSA will readjust the increase in COLA due to rapidly rising costs of goods and services.
So far, no promising announcement has come.
The COLA hike is designed to keep seniors on top of inflation so they don’t lose their purchasing power, but it looks like that doesn’t happen as long as the pandemic continues.
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