[sairahul82]

Approximately 5% increase and is inline with inflation.

[mensetmanusman]

Surprised these types of dollar amounts aren’t pegged to inflation, although if everything were pegged to inflation, what would things cost?

[jonas21]

They are. See section (g)(4) of:

https://www.law.cornell.edu/uscode/text/26/402

Everything, including the rounding to a multiple of $500, is specified in the law.

[ekianjo]

you mean the fake inflation measured by some artificial basket not representative of anything?

[gruez]

You're free to come up with your own index with your own basket. The BLS publishes inflation indices at a very granular level, so you don't even need to reverse engineer their data. For maximum shock factor, may I suggest a basket overweighted towards medical care, college tuition, and healthcare[1]?

[1] https://www.aei.org/wp-content/uploads/2020/01/cpi2020-875x1...

[curryst]

I wondered why you had medical care and healthcare, they seemed redundant, but good on BLS for separating hospital costs and medical costs. That truly is granular.

[sbelskie]

Do you have a better one you use instead to gauge inflation?

[nzmsv]

Even if they don't, that's not a valid argument. A metric can be misleading even in the absence of better ones. The parent comment does not deserve the downvotes.

For a balanced take: https://www.investopedia.com/articles/07/consumerpriceindex....

[mym1990]

Can’t tell if you’re implying that there is no inflation or if inflation is much higher than 5%?

[ac29]

Usually these folks are of the type who seem to think "well, my rent went up by 10%, therefore inflation cant really be 5%"

[nzmsv]

And are "these folks" as wrong as you imply? Is there a better indicator of inflation than a dollar's purchasing power?