The consumer price index for July increased 0.5 percent. It increased the CPI-W to 216.304. The increase over the prior year was 6.2 percent. Here’s the press release: http://www.bls.gov/news.release/cpi.nr0.htm
In case you missed it, my Sunday August 1 column explained why senior citizens were likely to get the largest benefit increase in 25 years, estimating the boost at about 6 percent. That estimate was based on typical “core” inflation increases of 0.2 percent in July, August and September. Here’s a link to that column: http://assetbuilder.com/blogs/scott_burns/archive/2008/08/01/want-a-good-raise-retire.aspx
With this unexpectedly large increase for a single month, it’s now nearly certain that the January increase will be
As many readers pointed out, some of this increase will be absorbed by an increase in the Medicare Part B premium. Historically, these premiums have increased at about twice the inflation rate. The current premium is $96.40 a month. The premium for next year has not been announced.