Inflation Report Sets Social Security COLA At 2.8%, I Bond Variable Rate At 2.32%

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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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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2 Responses to Inflation Report Sets Social Security COLA At 2.8%, I Bond Variable Rate At 2.32%

  1. Tipswatch's avatar tipswatch says:

    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.

  2. Theo's avatar Theo says:

    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.

Leave a reply to Theo Cancel reply