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Social Security beneficiaries are still expected to see a larger cost-of-living adjustment (COLA) in 2027 than they did this year, though it has decreased as inflation eased in July.
By law, the annual Social Security COLA is calculated using the Bureau of Labor Statistics’ consumer price index (CPI) inflation data for the months of July, August and September based on a variant of the dataset known as CPI-W. The COLA boosts beneficiaries’ payments to account for a rise in the cost of living, and the COLA for 2026 amounted to a 2.8% increase.
The BLS released the July CPI inflation data Wednesday that showed consumer prices were up 3.4% from...
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