Economics Consumer Price Index Cpi Questions
The impact of the CPI on cost of living adjustments for retirees is that it helps determine the changes in the cost of living over time. Retirees often receive fixed incomes, such as pensions or Social Security benefits, which may not keep up with inflation. By using the CPI as a measure of inflation, cost of living adjustments can be made to ensure that retirees' incomes are adjusted to maintain their purchasing power and keep up with the rising prices of goods and services.