mickeyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
[FONT=Arial, Helvetica, sans-serif]MOAA email that I recently received reports that inflation is back and eating away at the 5% deflationary hole that was dug last quarter.[/FONT]
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[/FONT][FONT=Arial, Helvetica, sans-serif]The Bureau of Labor Statistics released the January consumer price index (CPI), the metric used to calculate the annual cost of living adjustment (COLA). [/FONT]
[FONT=Arial, Helvetica, sans-serif]For the first time this fiscal year, the metric actually increased, at least partially eating away at the 5.0% hole left by months of deflation. Cumulative inflation for FY09 now stands at a -4.5%. [/FONT]
[FONT=Arial, Helvetica, sans-serif]The four-month cumulative inflation figure hasn't been this low in the last 40 years. Check out how this year's CPI compares to the last two years. [/FONT]
[FONT=Arial, Helvetica, sans-serif]If inflation is negative for the entire year, retirees would see no COLA. The law doesn't allow a negative COLA for military retired pay, SBP, Social Security, etc. [/FONT]