... the CPI jumps. “Consumer prices rose at the fastest pace in more than 25 years last month, spurred by a surge in energy prices to record highs after Hurricane Katrina.” These higher energy prices are going to be passed on to the average consumer in many different ways, so look for higher prices all around.
The jump in the CPI is one reason social security checks will gain a 4.1% cost of living increase next year. Will my checks gain that much?
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3:29 pm (reply)
Just wrote about this myself – looks like those with I bonds should do well in the coming months – link.
5:33 pm (reply)
Outstanding. 4.1%. That will give my parents a nice raise on their sole source of income….....
Hazzard
http://elym.blogspot.com
5:45 pm (reply)
It pays to be contrarian—those making out with I Bonds now are those who weren’t dumping all their money into tech stocks like everyone else in 2000. Where was I in 2000? Not even in the game…
12:04 am (reply)
Are you all nuts?! An increase in the rate for i-bonds or SS only means that inflation is present—no real gain. No one wins with i-bonds, at best, you don’t lose money. You say, “look for higher prices all around”. If the CPI has already risen, higher prices are already here!
10:26 pm (reply)
thc – with respect, you’re generalizing…inflation does not affect everyone equally.
12:18 am (reply)
Brian: If saying that inflation is bad, then yes, I’m generalizing. Celebrating a higher CPI is ludicrous.
11:16 am (reply)
thc – With the possible exception of Hazzard, I did not interpret this post and comments as a celebration for a higher CPI.