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.
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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.