Money Matters: Will cost-of-living raises be higher this year?

COLUMBIA, S.C. (WIS) - Inflation is driving up prices and making everything cost more.

Josh Bradley of Capital City Financial Partners thinks that will be reflected in pay increases for 2022.

“It’s no surprise that costs of goods and things we’re buying are going up,” Bradley said. “We’re already seeing that play through to higher wages for employees.”

Consumer Price Index, which measures the cost of common goods, shows a 6.2% increase from the previous year. It typically increases around 3% a year.

Another worry is if workers should lose buying power in the coming years.

“With the tight labor market, the power is definitely with the employees,” said Bradley.

Ultimately, however, Bradley explained we can’t say with certainty what companies will do in light of recent inflation.

This can also affect seniors on a fixed income.

Social Security benefits are going up 5.9% in 2022, and the main reason is that the cost-of-living adjustments are tied directly to movement in the Consumer Price Index.

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