Inflation rate doesn’t tell the whole story

In January, the Fed chairman reported the inflation rate for 2010 at under 2 percent. The Obama administration hailed this as indicating we have avoided massive inflation. Then in February, the same people said that the figures released did not include costs for health care, energy (gas and electricity) and food.

Health care was up 15 percent to 30 percent depending upon the success of insurance company investments and mandates of the Obama administration. Gas rose from $2.40 to $3.20, a 33 percent increase. Food items varied from 7 percent more for eggs, 9 percent for sugar, 10 percent for milk and 13 percent for meat items as reported Nov. 14 in the Wall Street Journal.

How has this affected the American public? Social Security COLA rules state that if inflation is under 2 percent, the increase in Social Security benefits will be less than 2 percent. Real nice! This is a double whammy on all Social Security recipients. According to the March 28 Gazette, the Medicare premium alone will eat up most of the COLA increase. So for the third year in a row, Social Security recipients will effectively receive no increase in buying power.

Glenn J. Drahn

Belle Plaine