The CPI-U increased from September's value of 241.428 to March's value of 243.801 (0.98%).
Previously issued bonds will see their variable rate adjust on the semi-annual anniversary of their issue date.
The CPI-U numbers have finally been released after the delay caused by the government shutdown and we can begin to speculate on the next I-Bond Rate.
September's CPI-U value of 234.149 shows an increase over March's value of 232.773, or 0.59%. The resulting semi-annual inflation component of the November composite rate will be 1.18%, which is the same as it is now.
If we assume the fixed rate portion is not increased again, the resulting composite rate for a new I Bond in November will be 1.18% again.
|Theoretical Fixed Rate||Composite Rate|
The CPI-U value increased from September's value of 231.407 to a value of 232.773 in March 2013. The resulting 0.59% semi-annual increase translates to a 1.18% CPI-U-linked rate for the May I Bond. The fixed rate of the newly issued bonds remains 0% for this period of May through November. The resulting composite rate is therefore 1.18% for a newly purchased I Bond.
As expected, the I bond rate for the period of November 2012 through April 2013 will have a composite rate of 1.76%. The new composite rate reflects the 0.88% increase in semi-annual inflation as mesaured by the CPI-U index and the new fixed rate, which remained at 0%.
As always, the 1.76% rate is available now for newly purchased bonds while the 0.88% CPI-U change will affect currently issued bonds on the 6-month anniversary of the bond's issue date.Source http://www.treasurydirect.gov/news/pressroom/pressroom_comeeandi1112.htm