It was announced on Oct. 16th  that more than 56 million Social Security recipients in the U.S. will see their monthly payments increase by 1.7 percent in 2013 which is their annual cost of living adjustment. The U.S. Department of Labor reportedthat the Consumer Price Index saw an increase of 0.6 percent in September for the second consecutive month.

But just how does the federal government determine things like the rate of inflation and cost of living? Emily Rooney discusses how the government decides the CPI and what this increase means for Americans in an economy where fuel costs and housing are still on the rise.