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Social security beneficiaries are likely to receive greater cost of living (COLA) next year after the latest inflation data show that persistent price pressure, according to a new report.
Social Security cola is calculated using a variant of IPC data which measures average annual inflation for the months of July, August and September – which means that the final cola for 2026 will be revealed after the publication of the CPI printing from September to mid -October.
The Bureau of Labor Statistics published Thursday Consumer price index (ICC) for August, which showed that the inflation of major titles from 2.8% in July to 2.9% last month on one year on the other. The CPI title increased 0.4% for the month of August.
With the latest data in hand, the senior Citizens League (TSCL) estimated that the social security cola will be 2.7% when it was announced next month – which would increase the monthly retirement benefits from $ 54 from $ 2,00 to $ 2,062.
A big change arrives for social security beneficiaries at the end of September
Social Security cola is based on inflation data in July, August and September. (Images Kevin Dietsch / Getty / Getty Images)
TSCL noted that its last estimate is higher than what was projected at the beginning of this year, when it estimated that there would be a cola of 2.1%, because “inflation is significantly higher” than its planned model.
He also noted that a cola of 2.7% would be almost a means of a historical point of view, because the Service adjustments have an average of 2.6% in the past 20 years. The highest cola was 8.7% in 2023, while the lowest was in 2010 and 2011 when the cola was 0.0%.
Inflation remained stubbornly high in August because the Fed weighs the rate drops
The official social security cola for 2026 will be announced after the publication of the September IPC data. (Jeffrey Greenberg / Education Images / Universal Images Group via Getty Images / Getty Images)
TSCL Executive Director Shannon Benton noted that group research shows that “many seniors believe that inflation is much higher than cola estimates” and that around 80% of the elderly thought that inflation last year was considerably higher than the 2.5% of Cola used at the start of this year.
The non -partisan committee for a responsible federal budget (CRFB) has drawn up its own forecasts for the Social Security 2026 Cola, which estimates the annual annual Inflation adjustment will be slightly higher at 2.8%.
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“For many people, Social Security is the only income protected by inflation they have retired,” said Bill Sweeney, Vice-President Director of AARP government affairs. “The cola allows American elders to keep us while daily costs continue to increase – from grocery store to housing, prescription medication.”
