The proposed use of the "chained CPI" for Social Security cost-of-living adjustments would be an ever-worsening cut in Social Security benefits. This is because the CPI-E (the Experimental Price Index for the Elderly, calculated by the US Department of Labor's Bureau of Labor Statistics) shows the goods and services purchased by the elderly actually experience greater inflation than even the general CPI.
As economic commentator Matthew Yglesias explained: "Grandma buys a lot of health care services and isn’t so interested in the falling price of an iPad 2." http://www.slate.com/articles/business/moneybox/2012/12/chained_cpi_a_sn...
The CPI-E, not the general CPI or chained CPI, should be used for Social Security COLAs.