August Inflation: Better News For TIPS, I Bonds And Social Security Benefits

Summary

  • CPI-U increased 0.4% in August, an upside surprise that broke a string of smaller-than-expected numbers.
  • Non-seasonally adjusted inflation increased 0.3%, which will boost TIPS principal balances in October and brings the I Bond’s future variable rate up to 1.4%, with one month remaining.
  • Social Security benefits at this point would increase 1.7% in January, but there is one month remaining to complete the calculation. The July prediction of a 2.2% increase is still looking unlikely.

Read my full analysis on SeekingAlpha.com

Also, I have updated my I Bonds and Inflation page with these new numbers.

And here are the new October inflation indexes for all TIPS.

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About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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