Inflation Report Sets Social Security COLA At 1.6%; I Bond’s Variable Rate Rises To 2.02%

Summary

  • The Social Security COLA of 1.6% for 2020 is well below this year’s increase of 2.8%, reflecting the dip in overall U.S. inflation this year.
  • The variable interest rate for U.S. Series I Savings Bonds will rise to 2.02% on November 1, up from the current 1.4%.
  • While overall inflation is being driven down by falling energy prices, core inflation is still running at a solidly-moderate rate of 2.4%.

This is the most important inflation report of the year because it provides the final pieces of data needed to determine the 2020 cost-of-living adjustment for the nation’s 67 million Social Security beneficiaries. It also sets in stone the next inflation-adjusted variable rate for U.S. Series I Savings Bonds.

Read my full analysis on SeekingAlpha.com

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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