Inflation data in August indicates a greater social security increase next year

Social security beneficiaries may receive a greater cost of living control (Cola) next year after the latest inflation data shows that price pressures are continuing, according to a new report.

Cola Social Security It is calculated using a variable of consumer price index data that measures the average annual inflation for the month of July, August and September-which means that the final cola will be detected for 2026 after the release of CPI print in September in mid-October.

The work statistics office was issued on Thursday Consumer price index (CPI) for the month of August, which showed the height of inflation in the title from 2.8 % in July to 2.9 % last month on an annual basis. The main CPI rose 0.4 % for August.

With the latest data on hand, the TSCL Association estimated that Cola’s social security will be 2.7 % when it is announced next month – which will increase the monthly interest of retired workers by $ 54 from $ 2,008 to $ 2.062.

A big change to social security recipients at the end of September

TSCL noticed that her latest estimate is higher than what was expected at the beginning this year, when she was estimated that there would be 2.1 % cola, because “inflation is much higher” than expected.

He also indicated that Cola at 2.7 % will be almost average from a historical point of view, as an annual leader Benefit modifications Its average has reached 2.6 % over the past twenty years. The highest Cola was 8.7 % in 2023, while the lower was in 2010 and 2011 when cola was 0.0 %.

The inflation remained stubbornly in August, where the Federal Reserve weighs discounts in interest rates

The CEO of TSCL Shannon Benton indicated that the group’s research shows that “many elderly people believe that inflation is much higher than cola estimates”, and that about 80 % of the elderly believe that inflation last year was much higher than Cola 2.5 % implemented at the beginning of this year.

The non -party committee for the responsible federal budget (CRFB) has developed its own social security forecast for the year 2026, which is estimated at annual. Amendment of inflation It will be slightly higher at 2.8 %.

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“For many people, social security is the only inflation protected income they enjoy in retirement,” said Bill Sweeni, Aarp’s deputy head of government affairs. “Cola enables the elderly in America to keep us with the continued high daily costs – from grocery stores to housing to prescribed medications.”