CPI Index Live Updates: Inflation Data, Gas Prices, Social Security COLA & More — September 13, 2022
What we covered here
- What CPI means for winter heating bill
- CPI Index: Gas prices, meat & eggs & dining out
- 2023 Social Security COLA: 8.7% based on CPI
- Excessive inflation causing poor dietary choices?
- Inflation still red hot despite drop in gas prices
- Infographic: CPI data for August 2022
GO IN THE KNOW
What August CPI Data Means for Heating Your Home This Winter
According to the latest Consumer Price Index data for August, the cost of utility gas service is up again. After dropping 3.6% in July, the CPI showed the price of piped gas up 3.5%. With increases nearly every month this year (including huge jumps of 8% or more in May and June), it equates to a total increase of 33% in the cost of this utility over this time last year.
To put that in perspective, an average heating bill that cost $150 last December will cost $199.50 right now — and we’re not even in the thick of winter yet. There are a few more months of CPI data to go before the season officially kicks off December 21 — and if trends stay steady, we could see an additional 10% or more increase.
CPI Infographic: Food Away From Home Costs Continue Climb
The latest inflation numbers showed a slight increase in the cost of eating out. The federal government’s food-away-from-home index for August 2022 rose 0.9%, according to the U.S Bureau of Labor Statistics. That was up from a 0.7% gain in July and matched the highest monthly increase of the year.
The food-away-from-home index covers any meals prepared at restaurants and other eateries, including full-service, fast casual, fast food and takeout. The index for full-service meals climbed 0.8% month-over-month in August, and the index for limited-service meals rose 0.7%.
Social Security: Senior Organization Revises 2023 COLA Based on CPI Data
In a press brief today, Mary Johnson of The Senior Citizens League (TSCL) announced a Social Security cost-of-living adjustment (COLA) of 8.7% for 2023. This new number was based upon the latest CPI-W data through August.
The adjusted COLA amount would increase average retiree benefits by roughly $144. Those on Social Security can calculate their personal increase by taking their gross Social Security benefit (prior to deductions for Medicare premiums and any tax withholdings) and multiplying it by .087.
CPI Index Infographic: Meat, Poultry, Fish and Eggs
Home-cooked meals continue to become more expensive. The latest Consumer Price Index for August saw the “food at home” category rise again, albeit less rapidly than in previous months.
The price increase is still a steady 0.7% for this category, which covers groceries, with many items producing sticker shock for average American families. As GOBankingRates previously reported, the typical household can spend up to $1,485 per month on groceries for a family of four.
CPI Index: Gas Prices Continue To Fall, Aiding Inflation
It’s a somewhat unexpected twist that the price of gasoline in the United States has fallen so rapidly that it is now having a positive impact on the overall inflation rate.
The gasoline index for August 2022 fell 10.6%, according to the Consumer Price Index for All Urban Consumers released today by the U.S Bureau of Labor Statistics. It was the index’s biggest monthly decline of the year, marking the second straight month it moved lower.
The double-digit drop helped offset steep gains in the prices of shelter, food and medical care, which kept overall inflation to a slight increase of 0.1% for August.
Unhealthy Inflation: How Consumer Prices Influence Poor Diet
Soaring consumer prices aren’t just bad for your wallet — they’re also negative impacting overall health due to poor dietary choices, according to a new Attest survey. It found nearly half of Americans (46%) are eating food past their expiration and “use-by” dates to stretch their dollars as inflation hits a 40-year high.
CPI August 2022: Gas Prices Drop, but Inflation Persists
On Sept. 13, the Bureau of Labor Statistics (BLS) released its Consumer Price Index (CPI) for August 2022. The all-items index for the 12 months ending August increased 8.3%, driven largely by soaring shelter, food and medical care prices.
The figure was higher than expectations, as many economists predicted what consumers pay for goods and services — including clothes, groceries, restaurant meals, recreational activities and vehicles — to decrease to 8% in August.
The CPI data will be the last big economic indicator before the Federal Reserve announces rate hike decision next week, at the end of its Sept. 20-21 meeting — many analysts anticipate Fed’s aggressive stance will continue based in the latest index.
For the full breakdown of August 2022 Consumer Price Index report, click here.
CPI Infographic: August 2022 Inflation Data for Goods & Services
