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Re: Social Security breakeven


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Posted by Greg1959 on February 26, 2017 at 08:40:47 from (206.72.212.241):

In Reply to: Re: Social Security breakeven posted by rrlund on February 26, 2017 at 08:19:49:

rrlumd- You are using CPI-U which is.....What is CPI-U?

The Consumer Price Index (CPI) is the statistical metric developed by the Bureau of Labor Statistics used to monitor the change in the price of a set list of products. The idea is that by monitoring the fluctuations in price it costs to purchase a set basket of goods, the government can track the cost of living for most individuals. The CPI-U is the CPI value for Urban Consumers, which excludes rural populations and represents approximately 80% of the population. The CPI and CPI-U do not directly measure inflation, but it gives a very good idea of whether we are in a period of inflation or deflation and how severe that change may be. As the Bureau of Labor Statistics states, "The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase at today's prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period."


SS uses CPI-W which is.....Term CPI-W Definition: The abbreviation for the Consumer Price Index for Urban Wage Earners and Clerical Workers, which is an index of prices of goods and services typically purchased by urban wage earners and clerical workers. This carries the official abbreviation CPI-W to distinguish it from it's more famous sister index CPI-U, which is the standard Consumer Price Index for All Urban Workers, (commonly abbreviated simply as CPI). Like the standard CPI, the CPI-W is compiled and published monthly by the Bureau of Labor Statistics (BLS), using price data obtained from an elaborate survey of 25,000 retail outlets and quantity data generated by the Consumer Expenditures Survey. The CPI-W is a continuation of the original CPI developed early in the 1900s to provide cost-of-living adjustment information to wage-earning workers."


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