That’s the annual cost of living adjustment recipients will see in their checks starting for 2022….
The cost-of-living increase, which will impact roughly 70 million people starting in late December and January, is tied to a measure of inflation that has surged this year as prices rise in a U.S. economy emerging from the coronavirus pandemic. Experts caution that millions of seniors will in reality see substantially less than a 6 percent bump, because Medicare Part B premiums are deducted from Social Security beneficiaries’ checks and are tied to seniors’ income. The increase in benefits will amount to roughly an additional $92 per month for seniors.
The Bureau of Labor Statistics said Wednesday that prices rose 0.4 percent in September compared to August. Overall, prices are up 5.4 percent over the last year. The “cost of living adjustment” that determines Social Security payment hikes is based on a different measure of inflation, but they both capture similar phenomenon in the economy….
Inflation accelerated in September, with consumer price pressures across America showing no sign of easing ahead of the all-important holiday shopping season.
Consumer prices increased 5.4% from the year-ago period, slightly faster than their 5.3% increase the previous month and on par with the increases in June and July. Core inflation — which strips out volatile food and energy costs — grew 4.0%, the same spike as in August.
It’s the fastest rate of inflation in 13 years, matching the pace.
The unexpected burst of inflation this year, as the country began to emerge from its pandemic lockdown, reflects sharply higher prices for food and energy, but also new and used cars, hotel rooms, airplane tickets and furniture, among other goods and services.
“Prices for food and shelter were responsible for more than half the [September] increase in CPI. Those costs, in addition to higher gas prices, hit lower-income prices particularly hard,”….
James Caravelle for Biden and Democrats….“It’s the Economy Stupid’……