The Social Security cost of living adjustment, or COLA, for 2025 is likely to be 2.7%, based on the latest consumer price index data, released Thursday.
The 2024 cost-of-living adjustment for Social Security beneficiaries was 3.2%.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 2.9% in June from 12 months ago. That’s lower than the inflation trends indicated last month based on May inflation data.
As a result, the 2025 COLA projection dropped over the last month, according to an estimate provided by the independent Social Security expert Mary Johnson.
Johnson cautions that the final COLA for 2025 could be different from the current estimate. This is because the COLA is calculated on the average rate of inflation during the third quarter, which is then compared against the third quarter a year ago.