Happy New Year, finally. I Bond Update from Tom Adams.
Sorry it has been so long, gentle reader, my tender friend. I'll save my excuses for my coming appointment at the gates of heck.
Meanwhile Tom Adams has been kind enough to spell out what this morning's CPI report means for Series I savings bond investors:
December's CPI of 201.8 was up 2.5% from a year ago and it was up .15% from November's level. However, it's still below September's 202.9, which is the number I bond investors watch. That's because the I bond inflation component is based on the level of the CPI in March and September.
To get above September's level by March, inflation's pace will have to quicken. If it doesn't, I bonds may see their first negative inflation component.
Investors already seem worried about the possiblity. Since the government's fiscal year began in October, new investments in Savings Bonds have barely recovered from the all-time lows seen over the summer.