Gina Bolvin, president of Bolvin Wealth Management Group, discusses commodity movements, expected inflation data, the housing industry and the outlook for consumers.
Social Security recipients are set to receive larger cost-of-living adjustments (COLAs) next year than previously expected because of uncomfortably high inflation rates.
Former Social Security and Medicare analyst Mary Johnson estimated that the adjustment could be about 3.2%, based on the following information: April inflation dataAccording to this, the consumer price index increased by 0.3% from the previous month, and by 3.4% from the same period last year.
Annual social security changes are calculated based on the Consumer Price Index for Urban Salaried and Office Workers (CPI-W) for July, August, and September. The CPI-W in April also increased by 3.4%.
A 3.2% increase in Social Security recipients’ monthly checks next year would mean recipients’ monthly checks would be significantly smaller than they would be in 2023. 8.7% bump. However, it is still higher than the average 2.6% increase recorded over the past 20 years.
Americans are carrying record amounts of household debt
Annual social security changes are calculated based on the consumer price index for urban salaried and office workers in July, August, and September. (Kevin Dietsch/Getty Images/Getty Images)
An increase of this size would raise the average retirement benefit of $1,907 by about $61 per month.
Johnson said that despite the rise in the cost of living last year, many retirees are struggling to keep up with high inflation.
This year’s benefit increase rate of 3.2% exceeded the actual inflation rate in March and April.
Why are groceries still so expensive?
“The rise in inflation shows that consumer purchasing power continues to decline,” Johnson said.
of Social Security Administration The final adjustment rate will be announced in mid-October.
Shoppers are seen at a Kroger supermarket on October 14, 2022 in Atlanta, Georgia. ((Photo credit: Elijah Nouvelage/AFP, Getty Images) / Getty Images)
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Inflation is putting severe economic pressure on most American households, forcing them to pay for everyday necessities like food and rent. The burden falls disproportionately on low-income Americans, whose paychecks are already tight and are highly exposed to price fluctuations.
According to the report, housing and gasoline costs continued to be the biggest drivers of inflation last month, accounting for more than 70% of the month’s overall increase.
Rent increased by 0.4% in the same month, and by 5.6% compared to the same period last year. The reason why rent increases are a concern is that Rising housing costs It has the most direct and severe impact on household finances. Meanwhile, gasoline prices rose by 2.8% during April. This is an increase of 1.2% compared to the same period last year.
Food prices in April fell 0.2% month-on-month, giving consumers some respite. However, grocery costs are still up 1.1% from the same period last year and more than 21% higher than in January 2021, just before the inflation crisis began.
