The annual Social Security COLA is determined by comparing the average CPI-W for the third quarter of the previous year with the current year for the same quarter (July, August and September).
The average CPI-W for the third quarter of 2012 was 226.936. That is the base for any 2014 Social Security increase.
Obviously we don’t know what the number will be for the 3rd quarter of 2013. However, here is the monthly CPI-W to date.
January 2013: 226.520
February 2013: 228.677
Using the February number as a benchmark, the increase for 2014 would be about 3/4 of one percent.
As long as inflation remains low, so will any Social Security COLA.
Update 4-16-13 9:00 AM. CPI-W for March 229.323
Update 5-16-13 CPI-W for April 228.949
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Categories: Social Security