08 Cola

[JR Reihs]

The way things are shaping up based on the CPI from SS it is looking "more likley than not" we will be topping out at 3.5%-4% on our cola's for 08.

I know it should be higher but we know how they get around the true CPI but it will be better than the last, but will still not reflect what is needed in todays cost.

[william n]

If we get anything over 3% cola I will be shocked. Food and energy are not counted in the cola formula. Computers and big screen TV's are counted, so if they go down a hundred bucks there goes the cola. Inflation will have to be burning hot for us to get a 6% COLA. Regardless, if you live on a fixed income you are going to be getting poorer day by day. My electric company wants to increase rates by 40 bucks a month. I don't think these kinds of things go into the cola either.

As far as i know the congress just agreed too 2.8% correct me if im wrong,Plleeaasse..lol

William

[jbasser]

Big svreen TVS and computers keep getting cheaper because the darn things are assembled in Mexico, Korea, China and the philippines.

To assess that based on the cost of consumable electronics, it is absurd.

J

[Philip Rogers]

As I understand it, Congress has authorized the increase but the percentage can't be decided until October, when the final figures are in. Also, if this worries anyone, you have way too much time on your hands, w/nothing to do. Try a hobby. jmo

pr

[william n]

As I understand it, Congress has authorized the increase but the percentage can't be decided until October, when the final figures are in. Also, if this worries anyone, you have way too much time on your hands, w/nothing to do. Try a hobby. jmo

pr

Phil, it doesnt worry me as much, as im looking forward to the increase. As being on a NSC Pension of 931.00 a month any increase is welcome. You being 100% have a little more income than i comin in every month, to participate in some of those hobby(s) you recommend. jmo William N.

[Pete53]

The 2.8% estimate is by Congressional Budget Office which is famous for a low ball estimate to get things to pass.They use this in the calculations of the effect on anything that involves spending money.

A respected journalist in Dallas predicts between 5 and 7% for the COLA. We will get the same one that Social Security does.

Actually I think that the 6.2% may fall cause when no one buys prices go down.

Gas cost $ 3.46 cents today in Dallas.

So William if it goes like it is now you should go up to around 1000 a month. I know that Veterans who live on a Pension can use that.

[jimmy]

If we get anything over 3% cola I will be shocked. Food and energy are not counted in the cola formula. Computers and big screen TV's are counted, so if they go down a hundred bucks there goes the cola. Inflation will have to be burning hot for us to get a 6% COLA. Regardless, if you live on a fixed income you are going to be getting poorer day by day. My electric company wants to increase rates by 40 bucks a month. I don't think these kinds of things go into the cola either.

I think the 5-7% is a good guess. I can't see us getting down to 3%. The CPI-W has increased every month for the last 10 months and is up 12.708 points which would be a 6.24% COLA increase if only July is used. The COLA is based on an average change over the last three months of the FY. With July at 6.24%, even if we lose half of that 10 month gain in August and the other half of the gain in September, we would still be at a 3.12% increase in COLA.

While the CPI-W includes things many of use do not purchase, food and energy are included in the CPI-W that is used to calculate our COLA. There are energy categories in both Transportation and Housing which specifically include: gasoline, fuel oil, natural gas and electricy. The Food categories include: food at home, food away from homme and alcohol.