Social Security COLA Update: What Today’s Inflation Report Means for Seniors
Summary
The U.S. government reported that the Social Security cost-of-living adjustment (COLA) for 2027 is being calculated using new inflation data. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 3.5% over the past year through August. This figure helps set how much Social Security payments will increase next year to keep up with inflation.Key Facts
- The CPI-W rose 3.5% from August 2025 to August 2026, according to the Bureau of Labor Statistics.
- The CPI-W index level in August 2026 was 328.481.
- Social Security COLA is based on the average CPI-W levels for July, August, and September compared to the same period two years prior.
- 75.7 million people receive Social Security or Supplemental Security Income benefits as of July 2026.
- The 2027 COLA will be finalized after the September CPI-W data is released.
- Recent Social Security COLAs were 2.8% for 2026, 2.5% for 2025, and 3.2% for 2024.
- The COLA for 2023 was much higher at 8.7% due to elevated inflation earlier in the decade.
- If the 2027 COLA matches the current average of July and August data (around 3.45%), the average retired worker could see an increase of about $72 per month.
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