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Sunday, January 18, 2009

Does the Mail Handler COLA figure in food and energy prices?

 
The Mail Handler COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers known as the CPI-W. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is limited to the spending patterns of younger consumers. Many argue that this index measures only 1/3 of the U.S. population, excluding real spending by seniors. Currently the CPI-W "market basket" contains the following: rent, some medical costs, high tech consumer items such as computers, big screen televisions, cell phones, DVD players, food, gas and oil among other items.

Further Reading and Sources:
1) Bureau of Labor Statistics
2) Senior Citizens League