The Social Security cost-of-living adjustment for 2026 will be a 2.7% increase in benefits, the same as anticipated last month, The Senior Citizens League predicted Thursday.

The Consumer Price Index for All Urban Consumers increased 0.4% on a seasonally adjusted basis in August, after rising 0.2% in July, the U.S. Bureau of Labor Statistics reported Thursday. Over the past 12 months, the index increased 2.9% before seasonal adjustment.

The 2026 cost-of-living adjustment, to be announced Oct. 15, will be calculated by taking the average annual inflation, as measured by the CPI-W, for July, August and September.

A COLA of 2.7% would raise the average monthly benefit for retired workers by $54, from $2,008 to $2,062. It would be higher than 2025’s COLA of 2.5% but lower than the 2024 COLA of 3.2%.

Over the past 20 years, the COLA has averaged 2.6%.

August Inflation Highlights

The index for shelter rose 0.4% in August and was the largest factor in the all-items monthly increase. The food index increased 0.5% over the month as the food consumed at home index rose 0.6% and the food consumed away from home index increased 0.3%.

The index for energy rose 0.7% in August as the index for gasoline increased 1.9% over the month. The index for all items less food and energy rose 0.3% in August, as it did in July. Indexes that increased over the month include airline fares, used cars and trucks, apparel and new vehicles. The indexes for medical care, recreation and communication were among the few that decreased in August.

The all items index rose 2.9% for the 12 months ending August, after rising 2.7% over the 12 months ending July. The all items less food and energy index rose 3.1% over the past 12 months. The energy index increased 0.2% for the 12 months ending August, while the food index increased 3.2%.

Credit: David Palmer/ALM

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