My grandmother's Social Security pension is indexed for inflation. What does this mean?

[Carmen P]

A. My grandmother's Social Security check has been increased by an amount equal to the percentage increase in the Consumer Price Index.

B. Social Security taxes have been raised by an amount equal to the percentage increase in the Consumer Price Index.

C. The market basket of goods and services used to calculate the Consumer Price Index has been adjusted to reflect the purchases made by retired households.

D. The government compares my grandmother's Social Security check against the increase in inflation, but there is no change in my grandmother's check unless Congress passes additional legislation.

[opal1331]

Social security checks are increased according to the price index, (cola) but are never increased as much as the inflation rate. Too many things are not taken into consideration when they figure the amount of increase, like the cost of home heatng fuel, increase in the cost of medications and hospitalization or secondary insurance for medicare, gasoline and the associated cost of food due to fuel prices.
So, the people on fixed income have been losing buying power for about twenty years now.