Social Security

Still not looking good for 2016 Social Security COLA. 

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.8 percent over the last 12 months to an index level of 231.520 (1982-84=100). For the month of April the index rose 0.2 percent prior to seasonal adjustment.  

234.241 is the average CPI-W for July, August and September 2014. To have a Social Security COLA in 2016 the average CPI-W for July, August and September 2015 must exceed that average…. we have a long way to go😱

So far this year’s the monthly CPI-W numbers are:

January: 228.294  February: 229.421  March: 231.055  April: 231.520

What goods and services does the CPI cover?

According to the BLS the CPI represents all goods and services purchased for consumption by the reference population (U or W) BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups. Major groups and examples of categories in each are as follows:

FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)

HOUSING (rent of primary residence, owners’ equivalent rent, fuel oil, bedroom furniture)

APPAREL (men’s shirts and sweaters, women’s dresses, jewelry)

TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)

MEDICAL CARE (prescription drugs and medical supplies, physicians’ services, eyeglasses and eye care, hospital services)

RECREATION (televisions, toys, pets and pet products, sports equipment, admissions);

EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);

OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).

Also included within these major groups are various government-charged user fees, such as water and sewerage charges, auto registration fees, and vehicle tolls. In addition, the CPI includes taxes (such as sales and excise taxes) that are directly associated with the prices of specific goods and services. However, the CPI excludes taxes (such as income and Social Security taxes) not directly associated with the purchase of consumer goods and services.

The CPI does not include investment items, such as stocks, bonds, real estate, and life insurance. (These items relate to savings and not to day-to-day consumption expenses.)

For each of the more than 200 item categories, using scientific statistical procedures, the Bureau has chosen samples of several hundred specific items within selected business establishments frequented by consumers to represent the thousands of varieties available in the marketplace. For example, in a given supermarket, the Bureau may choose a plastic bag of golden delicious apples, U.S. extra fancy grade, weighing 4.4 pounds to represent the Apples category.

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2 replies »

  1. I think that more should be done to save Social Security..not only for those getting it now but for future generations..just because the politicians up in Washington..are set for life..maybe they should cut their earnings and give it back to the people..esp those who need it..they keep giving themselves raises..and spending money on ridiculous things..give the money back to the people..u guys have taken enuf !!!

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