U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-30-2013, 03:44 PM
 
4,861 posts, read 6,920,241 times
Reputation: 5357

Advertisements

I have read SS will grant a 1.5% cost of living increase for SS recipients in 2014. In the same article it stated that Medicare will not increase.

I don't know how they calculate the cost of living but it sure doesn't go along with the increases in grocery items. A few months ago Walmart was selling bacon for about $4.50 and overnight they jumped it to $5.50. Wmart also increased Campbell's soup from $.75 to $1.50 but when it wouldn't sell they lowered it to $1.25. I'm not great at math but I believe those two increases are far more than 1.5%. Some items have not increased yet but there have been a large number that have.

Trust me, I am grateful for any increase but why call it a cost of living increase?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 10-30-2013, 04:13 PM
 
Location: Florida
500 posts, read 1,014,410 times
Reputation: 687
Not only has the prices increased but look more closely. Have you noticed how food items have shrunk. All the food items are getting smaller in size but you pay the same or more. An example is cartons of orange juice. Remember when they all were 64ozs? Look closer, they are 59ozs now. Another example is cans of tuna. For years they were 6ozs. Look closer, they are 5ozs and more expensive. Coffee is even worse. It's not just one ore two company's, it's pretty much all of them.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-30-2013, 04:20 PM
 
Location: Wherever I happen to be at the moment
1,229 posts, read 1,218,022 times
Reputation: 1836
Quote:
Originally Posted by David223 View Post
Not only has the prices increased but look more closely. Have you noticed how food items have shrunk. All the food items are getting smaller in size but you pay the same or more. An example is cartons of orange juice. Remember when they all were 64ozs? Look closer, they are 59ozs now. Another example is cans of tuna. For years they were 6ozs. Look closer, they are 5ozs and more expensive. Coffee is even worse. It's not just one ore two company's, it's pretty much all of them.
...and flour and sugar went from 5# bags to 4# bags with no appreciable change in price, candy bars shrank yet again, and on and on. If may fool some of the people but it doesn't fool all of the people. However, it's now not only the past but appears to continue to be the future. While 1.5% is nothing to crow about, it's better than nothing at all.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-30-2013, 04:24 PM
 
Location: NoVA
41 posts, read 53,365 times
Reputation: 52
Quote:
Originally Posted by donsabi View Post
I have read SS will grant a 1.5% cost of living increase for SS recipients in 2014. In the same article it stated that Medicare will not increase.

I don't know how they calculate the cost of living but it sure doesn't go along with the increases in grocery items. A few months ago Walmart was selling bacon for about $4.50 and overnight they jumped it to $5.50. Wmart also increased Campbell's soup from $.75 to $1.50 but when it wouldn't sell they lowered it to $1.25. I'm not great at math but I believe those two increases are far more than 1.5%. Some items have not increased yet but there have been a large number that have.

Trust me, I am grateful for any increase but why call it a cost of living increase?
From the www.ssa.gov website:
Quote:
"It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year. If there is no increase, there can be no COLA"
CPI-W:
Quote:
The CPI market basket is developed from detailed expenditure information provided by families and individuals on what they actually bought. For the current CPI, this information was collected from the Consumer Expenditure Surveys for 2009 and 2010. In each of those years, about 7,000 families from around the country provided information each quarter on their spending habits in the interview survey. To collect information on frequently purchased items, such as food and personal care products, another 7,000 families in each of these years kept diaries listing everything they bought during a 2-week period.
Over the 2 year period, then, expenditure information came from approximately 28,000 weekly diaries and 60,000 quarterly interviews used to determine the importance, or weight, of the more than 200 item categories in the CPI index structure.
It's an overall average of increases based on MANY items. Trying to compare that to the 2 items you listed is mathematically bad.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-30-2013, 04:32 PM
 
Location: Baltimore, MD
4,209 posts, read 4,687,304 times
Reputation: 7843
Quote:
Originally Posted by donsabi View Post
I have read SS will grant a 1.5% cost of living increase for SS recipients in 2014. In the same article it stated that Medicare will not increase.

I don't know how they calculate the cost of living but it sure doesn't go along with the increases in grocery items. A few months ago Walmart was selling bacon for about $4.50 and overnight they jumped it to $5.50. Wmart also increased Campbell's soup from $.75 to $1.50 but when it wouldn't sell they lowered it to $1.25. I'm not great at math but I believe those two increases are far more than 1.5%. Some items have not increased yet but there have been a large number that have.

Trust me, I am grateful for any increase but why call it a cost of living increase?
There is an assumption that if one of the products in a particular category increases in price, the consumer will substitute another product within the same category, rather than purchase the more expensive item. Thus, instead of buy Campbell's soup, you could buy the generic brand. I'm not sure what one would substitute for bacon, ham? bologna? Errghh. If we move to the Chained CPI the calculations will be based on substituting between categories, not within. That is going to be interesting. Cars gone up too much in price? Perhaps you would choose to purchase a flat screen television, instead. So states the Chief Actuary of Social Security. (I bet he later regretted that analogy).

SSA Chief Actuary Explains COLAS For Federal Transfer Programs - C-SPAN Video Library
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-30-2013, 04:51 PM
 
31,027 posts, read 37,056,760 times
Reputation: 13325
Quote:
Originally Posted by lenora View Post
There is an assumption that if one of the products in a particular category increases in price, the consumer will substitute another product within the same category, rather than purchase the more expensive item. Thus, instead of buy Campbell's soup, you could buy the generic brand. I'm not sure what one would substitute for bacon, ham? bologna? Errghh. If we move to the Chained CPI the calculations will be based on substituting between categories, not within. That is going to be interesting. Cars gone up too much in price? Perhaps you would choose to purchase a flat screen television, instead. So states the Chief Actuary of Social Security. (I bet he later regretted that analogy).

SSA Chief Actuary Explains COLAS For Federal Transfer Programs - C-SPAN Video Library
Yeah that was a hoot when he said it.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-30-2013, 05:05 PM
 
4,861 posts, read 6,920,241 times
Reputation: 5357
psunidc,

I listed only two items because this is a forum and not a study. Long posts seldom serve any purpose and are rarely read completely. CD members got the idea and that was my goal. Secondly the government employs thousands of employees in order to produce a report in their favor. I have me and my staff of one, me.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-30-2013, 05:25 PM
 
Location: Sacramento
13,872 posts, read 24,787,719 times
Reputation: 6631
Quote:
Originally Posted by Ghostly1 View Post
...and flour and sugar went from 5# bags to 4# bags with no appreciable change in price, candy bars shrank yet again, and on and on. If may fool some of the people but it doesn't fool all of the people. However, it's now not only the past but appears to continue to be the future. While 1.5% is nothing to crow about, it's better than nothing at all.
I hadn't considered this, it is a question that I haven't seen disclosed concerning the calculation of CPI-W.

I don't have any idea how they take into account the change in product sizing. If an item shrinks in size, I'd hope there was some factor for this in calculating CPI-W, but it wouldn't surprise me if this has (deliberately) been overlooked.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-30-2013, 05:50 PM
 
8,969 posts, read 12,982,108 times
Reputation: 21510
Quote:
Originally Posted by NewToCA View Post
I hadn't considered this, it is a question that I haven't seen disclosed concerning the calculation of CPI-W.

I don't have any idea how they take into account the change in product sizing. If an item shrinks in size, I'd hope there was some factor for this in calculating CPI-W, but it wouldn't surprise me if this has (deliberately) been overlooked.
Of course it wouldn't. Why am I not surprised?

Nevermind that this issue has been covered ad nauseum on this board, just like the canard that the government has eliminated food and energy from the CPI calculation. No matter how many times this fallacy is addressed, the ignorance of the general public perseveres over all.

Consumer Price Index Frequently Asked Questions

How are CPI prices collected and reviewed?

Each month, BLS data collectors called economic assistants visit or call thousands of retail stores, service establishments, rental units, and doctors' offices, all over the United States, to obtain information on the prices of the thousands of items used to track and measure price changes in the CPI. These economic assistants record the prices of about 80,000 items each month, representing a scientifically selected sample of the prices paid by consumers for goods and services purchased.

During each call or visit, the economic assistant collects price data on a specific good or service that was precisely defined during an earlier visit. If the selected item is available, the economic assistant records its price. If the selected item is no longer available, or if there have been changes in the quality or quantity (for example, eggs sold in packages of ten when they previously were sold by the dozen) of the good or service since the last time prices were collected, the economic assistant selects a new item or records the quality change in the current item.

The recorded information is sent to the national office of BLS, where commodity specialists who have detailed knowledge about the particular goods or services priced review the data. These specialists check the data for accuracy and consistency and make any necessary corrections or adjustments, which can range from an adjustment for a change in the size or quantity of a packaged item to more complex adjustments based upon statistical analysis of the value of an item's features or quality. Thus, commodity specialists strive to prevent changes in the quality of items from affecting the CPI's measurement of price change.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-30-2013, 06:07 PM
 
17,057 posts, read 22,367,316 times
Reputation: 50038
Quote:
Originally Posted by David223 View Post
Not only has the prices increased but look more closely. Have you noticed how food items have shrunk. All the food items are getting smaller in size but you pay the same or more. An example is cartons of orange juice. Remember when they all were 64ozs? Look closer, they are 59ozs now. Another example is cans of tuna. For years they were 6ozs. Look closer, they are 5ozs and more expensive. Coffee is even worse. It's not just one ore two company's, it's pretty much all of them.
David223 is right. The deal on coffee was very telling to me.

Some time back ( a year and a half ago IIRC) the local news station in my area announced a price increase regarding coffee was coming due to the "coffee shortage." I had to go to the store anyway so later that evening I drove down there fully expecting the price increase to already have happened.

I was right. All the major brands that my store stocks (Folgers, MJB, Maxwell House, etc) had gone to $12.99 across the board except for one brand-the store brand. I was only in there a few days previous and didn't see any dramatic difference in coffee prices because at that time I bought some just a month before. And yes, like David said, sizes have shrunk. I have a fair amount of tuna that I buy but haven't bought any recently. Guess I'll be looking closely at size AND price on THAT. Ugh!
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top