Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Related: The average American's retirement, Social Security worries explained
Wall Street begins a new week with a focus on economic data. Investors are keen to see if readings on consumer and producer prices nudge the Federal Reserve towards a quarter-percentage point rate cut or a half-percentage point rate cut in September. July retail sales will also be a key indicator on the health of the consumer and the economy overall.
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Good news is expected for America’s retirees. 2025 is likely to bring a Social Security cost of living adjustment, or COLA, increase that hasn’t been seen in over three decades.
The government won’t release official numbers until October, but based on 2024’s inflation data, experts predict Social Security recipients could get a raise of between 2.7 percent to 3.2 percent. A raise that big would mean four straight years of raises at or above 2.7 percent, that hasn’t happened in 32 years.
In order to determine the size of the adjustment, The Department of Health and Human Services relies on third-quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers. In June that rate was 2.9 percent higher than a year ago, and experts only expect it to tick down a little in coming months.
The Senior Citizens League says any raise will likely be gobbled up by food prices that are still higher than they were before 2020. One dozen eggs cost 80 percent more, lettuce is 72 percent more expensive, and a pound of sugar is up by 45 percent. Price jumps like those have led to rising food insecurity for retirees, according to the group. A recent survey of retirees showed one-third of respondents said they either visited a food pantry or applied for food stamps over the past year.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
Related: Everything you need to know to maximize Social Security benefits
