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Calculating the CPI

Mar 4, 2022, 15:24 PM by MOSERS
I understand that MOSERS COLA is 80% of the "average CPI" increase. Can you tell me how the average CPI is calculated? According to, "From December 2020 to December 2021, consumer prices for all items rose 7.0 percent, the largest December to December percent change since 1981."

This is a great question! The source you reference is comparing the change from just the month of December in 2020 to just the month of December in 2021. According to Missouri state law, each January, MOSERS must compare the average monthly values of the Consumer Price Index (CPI) for the calendar year just completed (2021) to the average CPI from the prior year (2020) to determine the percentage change between the two years. For example, while the difference from the month of December 2020 to the month of December 2021 was nearly 7%, the difference from January 2020 to January 2021 was 1.38%. We must use the average change from one year to the next. Please see the 2022 COLA Calculation Memo for details.

 As you noted, for general state employees, COLAs are based on 80% of the percentage increase in the average (CPI) from one year to the next. The maximum increase is 5% (minimum 0%). Please see the article, The 2022 COLA is Here, for additional information. 

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