CPI-W Rise Signals Higher 2027 Social Security COLA

The Bureau of Labor Statistics reported that the Consumer Price Index for Urban Wage Earners and Clerical Workers rose 3.4 percent between July 2025 and July 2026. This figure represents the first of three data points used to calculate the 2027 Social Security cost-of-living adjustment (COLA), with August and September readings still pending.

Because 2026 inflation has outpaced the previous period, the 2027 increase is expected to surpass the 2.8 percent raise beneficiaries received for 2026. The Senior Citizens League currently projects a 3.8 percent COLA for 2027. Such an adjustment would raise the average monthly benefit from $2,084.40 to approximately $2,163.60.

The Social Security Administration typically announces the official adjustment in October, with payments taking effect in January. While a higher COLA increases nominal payments, beneficiaries must absorb the rising costs of essential goods and services in real time before the adjustment is implemented.