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

Posted on September 11, 2020 by Tipswatch

Summary

  • Both all-items inflation (at 0.4%) and core inflation (at 0.4%) were higher than consensus estimates, continuing a recent trend.
  • The August inflation report is signaling a 1.2% increase in the Social Security COLA for 2021, but one more month of data remains.
  • A recent surge in inflation has been good news for holders of TIPS and I Bonds, reversing the deflationary months of March and April.

U.S. inflation increased 0.4% in August on a seasonally adjusted basis, again surpassing consensus estimates and proving once more that inflation is a factor to be considered in investment strategies.

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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