What a sick joke the "no inflation, no COLA for 2 years" has become on our seniors

[DJ13]

Consumers paid more for most goods in January

Thursday February 17, 2011

WASHINGTON (AP) -- Consumers paid more in January for everything from food and gas to airline tickets and clothing. The price increases reflect creeping but still-modest inflation.

The Consumer Price Index rose 0.4 percent last month, matching December's increase, the Labor Department said Thursday. Over the past year, the index has risen 1.6 percent.

Core prices, which exclude volatile food and energy costs, rose 0.2 percent. That's the largest monthly increase in more than a year. Over the past 12 months, core prices have increased 1 percent. This is more than December's 0.8 percent annual pace, but it remains well below the Federal Reserve's comfort zone for inflation of between 1.5 percent and 2 percent.

Food prices climbed 0.5 percent in January, the most in more than two years. Still, food costs in the U.S. are still tame compared with the raging inflation in many developing countries. Those countries are more vulnerable to steep rises in the prices of corn, wheat, coffee and other commodities.

http://finance.yahoo.com/news/Consumers-paid-more-for-most-apf-3096006231.html?x=0&sec=topStories&pos=7&asset=&ccode=

[annabanana]

1. Yup.. No inflation. All you have to do is stop counting food and energy and

POOF!. .no inflation. Magic.

[Jack_DeLeon]

4. pretty fucked up that two of the most important costs arent counted...

If you dont have food you will eventually die, if you dont have energy society as we know it will die, yet the increasing costs in those sectors aren't counted.

[pinqy]

10. Except they are counted

And it even said so in the article.

[Exilednight]

11. They're not counted when the government figures out how much, if any, to raise SS.

[pinqy]

13. Yes, they are

Core inflation has only ever been used by the FED and other finance types for inflation rates etc. Social Security uses the all items CPI-W, which includes food and energy Misconceptions about the CPI Very first Q
&A addresses this.

[Exilednight]

14. If that were true, then SS recipiants would of received an

increase at the beginning of this year. If you include food and fuel prices, costs went up last year. Without them, costs stayed flat.

[pinqy]

17. changes to SS are based on the 3rd quarter,

not the beginning of the year, and there's a minimum increase in the CPI (3%) needed to trigger an increase in benefits.

[classof56]

2. Yes, but I pay less when I go to the store. Or gas my car.

:sarcasm:

Actually, Tuesdays are senior discount days at the local Fred Meyer. Now if I could just afford the gas to drive there.

:banghead:

[catabryna]

3. We can share a cab sometime!

Well, actually Oregon is a big state. I don't have a car, and I'm not a senior, but I do receive Social Security Benefits and I also happen to shop at Fred Meyers. :)

[customerserviceguy]

5. Ahh, Freddy's

I always go there when I get back to the Northwest! The only place that has a better beer selection is Whole Foods, but Fred's has better prices.

[Lugnut]

6. Sick joke indeed.

It's going to be a long year. With any luck they'll toss us a few crumbs in January, 2012 that Medicare will gobble up in premium increases. By the time my Medicare supplement insurance company gets done increasing premiums I'll be in the friggin' hole.

One regional grocery chain here has senior citizen discounts on Tuesdays as well. If you buy anything other than specials the prices are eye-popping.

[StarsInHerHair]

7. the only solution I have is to tell anyone on a small fixed income to shop at $

dollar stores or 99 cent stores. I do. They have fresh yellow and orange bell peppers right now at $1 apiece, compared to $5 lb at regular stores, altho I haven't recently been to a regular grocery store in awhile. Fresh and frozen veggies, milk and yogurt and cheese, bagels various breads, jars of olives, jalapenos, pickles, tp, napkins, paper towls, toothe paste, shampoo, soap, dog food, cat food, candles-good for storm-related blackouts, or if your electricity is shut off. DON'T USE BBQ BRIQUETS IN THE FIREPLACE!! it will KILL you! Many don't seem to know this, my local news has had a few stories.
$ stores also have deli meats-the packaged kind, yes it's lower grade but it's not catfood. They also have pepsi, coke, RC Cola, cranberry juice, arizona tea, green teas bags, regular tea bags, etc. Hope it helps-if you have an elderly neighbor perhaps offer to drive them, often they may not ask for help.


oh & it's not just seniors but those on SSI

[Mimosa]

8. Food prices are up 10% during the last 20 months

I pay serious attention because I have to. Bread, chicken, produce are all up 10% at least and haven't gone down.

[annabanana]

9. kickin' in the am . . . . . . .n/t

[BzaDem]

12. As many here have already pointed out, the price level is still below its peak. Therefore, even if

there is inflation, the checks (representing the peak price level) will not rise until the price level exceeds its peak.

If SS payments decreased to reflect the lower-than-peak price level before, then they would increase now (but not all the way up to the peak). But because payments fortunately do not decrease, we unfortunately have no increase until the price level exceeds its peak.

[PBS Poll-435]

15. Do you think they planned it? A CPI dump?

COLA is a formula. Err...part of the law.

What were they supposed to do?

[Blue_In_AK]

16. Yeah, it's pretty stupid.

Every single one of my utilities has gone up, and my social security check isn't quite cutting it anymore. I don't want to raise my tenant's rent, but if this keeps up I'm going to have to.