Some consumers that have been juggling the bills and trying to keep debt under control will find that while it is still difficult considering that prices for necessities rose so much last year there is a small glimmer of hope of improvement of a strained economy. The latest statistics from the United States government show that the Consumer Price Index (CPI) rose only 0.2 percent in September. While this still suggests inflation, comparatively, over the past 12 months the CPI has seen an average increase of 1.3 percent.
The CPI is a calculation based on a sampling of costs in urban areas of the United States and includes:
- FOOD AND BEVERAGES
- HOUSING
- APPAREL
- TRANSPORTATION
- MEDICAL CARE
- RECREATION
- EDUCATION AND COMMUNICATION
- OTHER GOODS AND SERVICES
The Bureau of Labor Statistics reports that, generally, urban consumers are paying less for food and energy, but more for transportation, medical care and housing. The CPI does not include prices in rural areas.
According to the CPI statistics, those who are employed by the federal government and those receiving social security will see little relief in 2010. Cost of living adjustments (COLA) are calculated by comparing the CPI to the same statistics as the previous year. 2008 saw a 5.8 percent COLA representing a CPI increase of 5.8 percent. Since, overall, 2009 reflects a decrease there should be no COLA increase for 2010. Leaving government employees, senior citizens, and disabled persons still struggling with debt for at least another year.
What may be seemingly good news for some could be bad news for others.
