August Inflation: What It Means For Social Security, TIPS And I Bonds

Summary

  • Headline inflation numbers matched the consensus forecast, but core inflation ran higher than expected. Gasoline prices were down, moderating overall inflation.
  • With one month of data remaining, the Social Security COLA looks likely to increase 1.6% to 1.8% for January payments.
  • The I Bond’s new variable rate, to be reset November 1, looks likely to be higher than the current rate of 1.4%.

There was an upside surprise in core inflation — which removes food and energy — with core inflation rising 0.3% in August and 2.4% over the last 12 months. The consensus estimate was for 0.2% for the month and 2.3% year-over-year.

Read my full analysis on SeekingAlpha.com

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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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