The monthly benefit for the Canada Pension Plan ( CPP) is revised each January. The calculation is based on the average monthly CPI (Consumer Price Index) for the most recent twelve month period ending in October over the same period for the previous year. Because we don’t yet know the CPI for this month we cannot yet precisely calculate the upcoming January change. On the other hand, the CPI for September 2024 was released this morning so we have eleven months of data available. The average CPI for the eleven months ending with September 2024 was 160.2. The average CPI for the twelve months ending October 2023 was 156.3. Based on these two numbers the calculation for the January adjustment would be 160.2 over 156.3 indicating an increase of 2.5% for the new year. Assuming the October CPI will be similar to September, we can easily predict a revision of 2.5-2.6% for January 2025.
Tuesday, October 15, 2024
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