The estimated 3% increase due to COLA (Cost of Living Adjustment) in Social Security checks by 2024 stays this week after the most recent reported inflation figures.
The Labor Department’s Bureau of Labor Statistics (BLS) revealed that, after 12 consecutive months of falls, the inflation rate in the United States rose two tenths in July and stood at 3.2%.
In monthly terms, consumer prices rose two tenths compared to the month of June, the entity indicated.
This rise comes after the indicator stood at 3% in June, its lowest level since before the pandemic.
As for the annual rate of core inflation, a line that measures the rise in prices without counting energy or food, it fell slightly by one tenth and stood at 4.7% in July.
Despite of minimal increase in inflation levels last month, the downward trend continuesso the beneficiaries of the Social Security Administration (SSA) programs.
If finally the COLA for the next year is calculated at 3%, Social Security recipients will receive, on average, $1,787 per monthly check.
The above is equivalent to an additional $53.60 dollars to what they currently receiveaccording to the preliminary estimate of the Senior Citizens League.
The official announcement on the amount of increase by COLA will be made in mid-October next as usual.
By that date, the Bureau of Labor Statistics will have completed the calculation of the inflation levels of the third quarter of the current year (July, August and September) and that of the previous year to set the amount.
The COLA is determined based on the Consumer Price Index for Salaried Workers in Urban Areas and Administrative Workers (CPI-W).
The CPI-W is established by the aforementioned entity. By law, that’s the official measure SSA uses to calculate cost-of-living adjustments since 1975.
If the current CPI-W is higher than the previous one, Social Security recipients will receive an increase next year.
This year, Social Security recipients see an 8.7% increase reflected in their monthly checks, one of the highest in the history of measurement.
Keep reading:
They estimate an average amount of Social Security checks at $1,787 under a 3% increase by COLA in 2024
14.3% is the highest COLA increase in Social Security history
