Quote:
Originally Posted by mathjak107
the reality the cpi's and our personal cost of living have little in common .
the cpi is only a price change index .
our personal cost of living is comprised of that price change on only the stuff we use x how many times we personally use it with some quality factor included . better quality goods see greater price increases but can last a lot longer .
here in nyc more than half of all rentals saw no rent increases in two years for millions of people . the apartments are stabilized . that is a lot different than what others are seeing .
many older retirees no longer do or buy what they used to so a good portion of price increases in what they still use is offset by what they don't .
so don't get to wrapped up in this thought that somehow the cola increases will match your personal rate of inflation . the cpi reflects the changes in prices of goods and services in the 1500 mini economies that make up this country but they do not reflect anyone in particular .
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That's all correct.
If I thought that the CPI-W was loaded with things I don't buy, then I could enjoy SS COLA increases without worrying that the purchasing power of my bonds and pension were being eroded.
The BLS has developed a CPI that is weighted for things they think retirees buy
https://www.bls.gov/opub/ted/2012/ted_20120302.htm , it hasn't drifted far off the CPI-W. So I don't see the "average" retiree winning that game.
Personally, I see medical expenses becoming a bigger share of our budget. I'm not optimistic that we'll be on the good side of this, either.
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