According to the latest U.S. ConsumerPriceIndex for Urban Consumers report, meat and dairy prices increased by 8% in the last year, and since 2010, the prices of grains have doubled.
The increase for a coming year is based on inflation between the third quarter of the prior year and the third quarter of the current year, as measured by the ConsumerPriceIndex for Urban Wage Earners and Clerical Workers, or CPI-W. In the third quarter of 2008 energy prices and the CPI-W spiked, giving beneficiaries a hefty 5.8 % COLA for 2009.
Every six months your bonds are credited with the fixed rate plus the rate of inflation as determined by the ConsumerPriceIndex for All Urban Consumers (CPI-U).
The earnings rate combines a 0.00% fixed rate of return with the 4.60% annualized rate of inflation as measured by the ConsumerPriceIndex for all Urban Consumers (CPI-U).
The ConsumerPriceIndex program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services.