COLA heating up again

[braumeister]

The Consumer Price Index climbed once again in June, surpassing last year’s high. Can higher interest rates be far behind?

The Consumer Price Index increased another 0.2 percent in June, rising to 234.702. It now stands 1.9 percent above the FY2014 COLA baseline of 230.327.

COLA Watch : MOAA

 

[M Paquette]

I bet the CPI dips for July. CPI-U for June included arelatively large bump in energy costs, in particular the gasoline index. For all items less food and energy (the two moste volatile) the June bump was 0.1%

Here's the July 22 release for the data MOAA picked up: http://www.bls.gov/news.release/pdf/cpi.pdf

 

[BLS53]

I bet the CPI dips for July. CPI-U for June included arelatively large bump in energy costs, in particular the gasoline index. For all items less food and energy (the two moste volatile) the June bump was 0.1%

Here's the July 22 release for the data MOAA picked up: http://www.bls.gov/news.release/pdf/cpi.pdf

The CPI-W and CPI-U are two different indexes. CPI-W is the only one that counts for military pensions and SS increases.

 

[W2R]

The CPI-W and CPI-U are two different indexes. CPI-W is the only one that counts for military pensions and SS increases.

Yes, I believe that to be the case.

Looks like that increase is very close to the same this time for both indices. Looking at the non-seasonally adjusted values in the link given, the CPI-W is just 0.1 percent behind the CPI-U:

The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.1 percent over the last 12 months to an index level of 238.343 (1982-84=100). For the month, the index rose 0.2 percent prior to seasonal adjustment.​

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The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2.0 percent over the last 12 months to an index level of 234.702 (1982-84=100). For the month, the index rose 0.2 percent prior to seasonal adjustment.​

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[Mulligan]

If CPI inflation stays up the next three months like it has the previous 3 months, I Bonds will pay about 3.5% fixed the next 6 month cycle. I doubt it will as I am guessing like M Paquette it reverses back a bit the next few months.


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[braumeister]

Looks like 1.7% will be the number for next year.

COLA Announced for 2015: It’s 1.7% : FedSmith.com