Social Security COLA for 2009 Still Heading Toward
Six Percent Increase with New Data
Bureau of Labor Statistics says critical consumer
price index jumped 5.9% in August
Sept.
16, 2008 The consumer price index that is used to determine the
cost-of-living adjustment senior citizens will receive from Social
Security in 2009 was released today and the change for August 2008 over
August 2009 is still looking like the COLA will be an increase in the
range of 6 percent, the largest since 1982. The change for August is 5.9
percent.
Current trends indicate it will be over 6% and
largest cost-of-living adjustment since 1982; announcement due next
month
Sept. 15, 2008 Senior citizens may be headed for their largest pay
increase or cost of living adjustment in more than 25 years,
following this years Social Security COLA of only 2.3 percent.
Projections are now being made that the increase for 2009 will almost
certainly exceed six percent.
Read more...
The COLA is calculated each October using the
change in the Consumer Price Index for Urban Wage Earners and Clerical
Workers (CPI-W) for the months of July, August and September.
As reported yesterday in SeniorJournal.com, the
July change was an increase of 6.2 percent over 2007. Now, with the
second month in place with a 5.9 percent gain, two-thirds of the
critical results are tracking at about 6 percent.
The final number needed to determine the Social
Security COLA for 2009 is the gain for September. The Bureau of Labor
Statistics said today that this number for September is scheduled for
release on Thursday, October 16, at 8:30 A.M. (EDT).
The August CPI-W did indicate a slowing since July.
On a seasonally adjusted basis, the index decreased 0.2 percent in
August from July.
This new COLA, if it hangs in at about 6 percent,
could possibly mean a monthly retirement pay increase of around $75 for
the average Social Security recipient. And, the COLA applies to all who
receive Social Security, even if they joined after the beginning of
2008.
CPI-W decreased 0.5 percent in August, prior to
seasonal adjustment, although, the August level of 215.247 (1982-84=100)
was 5.9 percent higher than in August 2007.
The major category that kept the price index from
climbing even higher in August was a drop in "Transportation." This
reflected lower costs in almost at categories - gasoline prices, auto
prices, airline prices and even public transportation.
Percent changes
in CPI for Urban Wage Earners and Clerical Workers (CPI-W)
(Seasonally Adjusted)
Expenditure
Category
Changes from
preceding month
Compound annual rate 3-mos. ended Aug. 2008
Unadjusted 12-mos. ended Aug. 2008
Feb. 2008
Mar. 2008
Apr. 2008
May-2008
Jun-2008
Jul-2008
Aug. 2008
All
items..........
0
0.4
0.2
0.7
1.2
0.9
-0.2
8
5.9
Food and
beverages
0.3
0.2
0.9
0.3
0.8
0.9
0.6
9.6
6
Housing...........
0.2
0.5
0.4
0.5
0.5
0.7
0
4.6
4.2
Apparel...........
-0.3
-1.2
0.2
-0.2
0
0.8
1
7.6
1.8
Transportation....
-0.7
0.7
-0.7
2.1
4
1.8
-1.7
17.4
12.8
Medical
care......
0.1
0.1
0.2
0.1
0.2
0.1
0.3
2.3
3.4
Recreation........
0.1
0.3
-0.2
0
0.2
0.4
0.5
4.4
2.3
Education and
communication..
0.1
0.2
0.4
0.3
0.5
0.5
0.2
5.2
3.3
Other goods and
services.......
0.3
0.4
0.4
0.5
0.6
0.5
0.2
5.1
4.6
Special
indexes:
Energy............
-0.7
1.9
-0.2
4.5
6.8
4
-3.2
33.8
27.8
Food..............
0.3
0.2
1
0.3
0.8
0.9
0.6
9.9
6.2
All items less
food and energy
0
0.1
0.1
0.2
0.3
0.3
0.2
3.5
2.5
Keep up with the latest news for senior citizens, baby
boomers
Sept.
16, 2008 The consumer price index that is used to determine the
cost-of-living adjustment senior citizens will receive from Social
Security in 2009 was released today and the change for August 2008 over
August 2009 is still looking like the COLA will be an increase in the
range of 6 percent, the largest since 1982. The change for August is 5.9
percent.