The US annual inflation rate was 8.2% in September – this is higher than the expected 8.1%.
The consumer price index rose 0.4%.
The Social Security cost-of-living adjustment (COLA) will be 8.7 percent for 2023, the highest increase in 40 years, according to a Thursday announcement from the Social Security Administration.
That increase tops the 5.9 percent adjustment that was implemented in 2022, which at the time was the highest in decades, amid surging inflation. The last time the Social Security Administration announced a higher COLA was in 1981 when an 11.2 percent increase was issued. And in 1980, the COLA increased by a massive 14.3 percent, data shows.
The Epoch Times reported:
The U.S. annual inflation rate came in at 8.2 percent in September, down from 8.3 percent in August, according to the latest data from the Bureau of Labor Statistics. This was higher than the market expectation of 8.1 percent.
Core inflation, which strips the volatile food and energy sectors, advanced to a 6.6 percent annual rate, a new four-decade high. This was up from 6.3 percent in August and higher than the market forecast of 6.5 percent.
On a monthly basis, the consumer price index (CPI) rose 0.4 percent, while the core CPI surged 0.6 percent.
As Americans’ cost of living increases, Social Security has to keep up.
Social Security announced an 8.7% cost of living adjustment for retirees – this is the highest in 40 years because the inflation is the highest the U.S. has seen in 40 years.
The adjustment will be applied in January.
ABC News reported:
The Social Security Administration said average payouts will increase by more than $140 per month in 2023.
“Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room,” acting SSA Commissioner Kilolo Kijakazi said in a statement. “This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned.”
The SSA had increased the cost-of-living adjustment to 5.9% last year, making 8.7% a significant increase to an already-record high.
The maximum amount of earnings for the Social Security tax will also be going up — from $147,000 to $160,200.
Many around the country continue to deal with escalating prices on everything from rent to food and gas as inflation increases have yet to yield.
What does it mean for the Social Security Trust Fund?
