For those relying on Social Security as a primary source of income, the annual cost-of-living adjustment (COLA) can help counter rising prices for common purchases. However, the COLA is based on any inflation in the third quarter of the current year versus the previous year, as reflected in the Consumer Price Index for Urban Wage Earners (CPI-W). Yet that index doesn’t always reflect the on-the-ground reality for seniors, as some categories rise faster than this broad inflationary gauge.
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