5.7: CPI
ADOPT IMPROVED MEASURE OF CPI. Other Information:
Use the chained CPI, a more accurate measure of inflation, to calculate the Cost of Living Adjustment for Social Security
beneficiaries. As with the rest of the mandatory budget and the tax code, we recommend relying on the “chained CPI” to calculate
the Cost of Living Adjustment (COLA) in Social Security, rather than the standard CPI. The Bureau of Labor Statistics has
stated that the chained CPI is designed to more closely approximate a cost-of-living index than the standard CPI, and experts
on both sides of the aisle have supported this technical improvement to the index.
Indicator(s):
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