Summary
- September inflation rose 0.1%, under the consensus estimate. Annual inflation fell to 2.3%, also under estimates.
- Today’s inflation report means the Social Security COLA will increase 2.8% for 2019, the highest increase since 2012.
- The data also set the I Bond’s inflation-adjusted variable rate at 2.32%, slightly higher than the current 2.22%.
Read my full analysis on SeekingAlpha.com
Also, I have updated my Tracking Inflation and I Bonds page with the new numbers.
And view my Social Security COLA page for these updated numbers.
And here the new November Inflation Indexes for all TIPS.
How come you never discuss FRNs? What’s wrong with a 13-week TBILL that adjusts every week? They have kept up with rate increases for almost two years now.
I have written a couple of times about FRNs, most recently in February 2017 … https://seekingalpha.com/article/4041595-frns-time-take-look-treasury-floating-rate-notes
The only issue with FRNs is that they tie up your money for 2 years, with just a small premium (currently 4 basis points) over a 13-week Treasury. If you are sure you will be rolling over the 13-week for at least 2 years, the FRN will be a better investment.