The rate of inflation has seen record highs over the course of the last year, and reports for Nov. are no different.
The Bureau of Labor Statistics reports that over the last year, inflation has risen 6.8%.
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The index for gas, housing, food, used vehicles, and new vehicles all rose.
Seniors have suffered the most due to the cost of inflation. They lived on a fixed income, and while costs rise around them, their income remains the same.
The Senior Citizens League, which called on Congress to send another stimulus check to seniors, reports that seniors were eating one meal per day and cutting medications in half to get by.
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What does inflation mean for Social Security and COLA?
Every year the SSA uses the Consumer Price Index for Urban Wage Earners and Clerical Workers to decide if, and how much, Social Security benefits increase.
They look at the rise of inflation for July, Aug. and Sept. to decide and announce it in Oct.
The new benefits go into effect in Jan. of the next year.
The number they came up with for 2022 is 5.9%.
For the last 12 months, the total rise has been 6.8% for CPI-U and 7.6% for CPI-W.
As the rise continues, it will only surpass the 5.9% increase announced in Oct.
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Many want to know if the SSA will readjust the COLA increase due to the quickly rising costs of goods and services.
Right now no announcement promising that has come.
The COLA increase is designed to keep seniors up to speed with inflation so they don’t lose purchasing power, but that looks like it may not happen as the pandemic continues.
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