New data have been released. Check here for more!
The CPI-W for May 2012 was released this morning by the Bureau of Labor Statistics, and the news is not good for Social Security recipients hoping for a raise leading into next year. The CPI-W index fell from 227.012 to 226.600, which is 1.5% higher than the third quarter 2011 average (the baseline for COLA calculations). The decline is due entirely to falling energy prices (food prices were unchanged in May, and all items excluding food and energy increased slightly.
The May decline illustrates the uncertainty in trying to project the Social Security COLA. Nevertheless, we’ll keep a sharp eye on the numbers and update you as new data become available. CPI-W for June will be available in mid-July. Stay tuned!