Noun - An alternative formula to measure inflation. Unlike the Consumer Price Index, the formula for which is set once every two years, the Chained
Consumer Price Index for All Urban Consumers (C-CPI-U) takes into account month-to-month changes in consumption habits in response to rising or decreasing prices.
Why does it matter?
The Consumer Price Index is used by various agencies to determine
for federal programs, including Social Security, disability, and veterans benefits.
Groups pushing for the government to adopt Chained CPI say it will reduce the federal deficit.
Opponents claim it will reduce federal payments to the elderly and the needy.
Which party supports it?
As the old adage goes, politics makes strange bedfellows.
Though the concept has been associated in recent years with Republicans, it has bipartisan roots, and was backed by President Obama in his 2014 budget.
Just in the last week, eight conservative groups
voiced strong concerns
over shifting to Chained CPI.
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