Cooling inflation will likely translate to a reduction in the cost-of-living adjustment – which Social Security recipients could get next year. Overall, inflation in June 2023 was up some 3% from the year prior; that represents the smallest 12-month increase since the period ending in March of 2021.
A 3% COLA (Cost Of Living Adjustment) would raise the average monthly benefit of $1,789 by $53.70.
If it holds, the 3% adjustment would be significantly lower than the 8.7% COLA increase Social Security recipients had received back in 2023.
The official announcement is expected October 12th.
