Oct CPI Released
With a 5.8% COLA in the bank for 2009, the Consumer Price Index (CPI) promptly tanked to start the new fiscal year.
The October CPI dropped 1.3 percent – the biggest October decline in 61 years.
And with gas prices continuing their steep falloff into November, it looks like inflation will start off FY2009 in an even deeper hole than it did in 2007, when we ended up the year with a 2.3% COLA
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FY2008 Final COLA
The Dec 2008 COLA (which retirees will see in their Jan. 2009 checks) will be 5.8% based on a COLA base change from 203.6 for the third quarter of 2007 to 215.5 (new 2008 COLA Base) for the third quarter of 2008.
The September CPI-W was down 0.1% based on a decrease to 214.935 from the August CPI-W of 215.247. The reduction was primarily based on energy prices decreasing by 1.9% while food prices were up 0.6%.
The following partial COLAs apply to those who retired during calendar year 2008. The partial COLA for retirees who entered service before 8 Sept 1980 (Final Pay) is 5.0%.
The partial COLAs for those who entered after 7 Sept 1980 (Hi-3) will be as follows based on quarter of retirement.
1st Quarter: 5.0%
2nd Quarter: 3.8%
3rd Quarter: 1.2%
4th Quarter: 0.0%
Servicemembers who retired during calendar year 2008 will receive a partial COLA for this year because they already received a January military pay raise (which also raised their 2008 retired pay). Members retired during 2008 will receive full-year COLAs in future years .
View historical CPI and COLA tables