The U.S. Bureau of Labor Statistics has announced that the Consumer Price Index was 6.2% higher in October 2021 compared to October 2020. The CPI measures the change in prices during a specific timeframe. This is the highest rate of inflation in more than 30 years and is being driven by increased energy prices and transportation related supply chain shortages. Click here for more.
Some employers use the CPI to determine cost-of-living adjustments for employees, but there is no requirement to do so. President Biden, using emergency powers, has set the federal employee cost of living increase at 2.2% with another .5% in high-cost areas for an average of 2.7%. Social Security is increasing benefits by 5.9% in December (the highest increase since 1981).