New government data showing rising inflation points to a higher Social Security cost-of-living adjustment for 2027, according to new forecasts.
The Social Security COLA may be 4.2% amid “sharply rising” gasoline, energy and fresh produce prices, according to Mary Johnson, an independent Social Security and Medicare policy analyst.
Johnson’s new forecast is based on April consumer price index data that was released on Tuesday, and is up from the 3.2% COLA estimate for 2027 that Johnson forecast last month.
Meanwhile, the Senior Citizens League, a nonpartisan senior group, now estimates the COLA could be 3.9% in 2027 — up from the 2.8% annual increase the organization had forecast in April.
The higher COLA forecasts come as consumers continue to face price pressures. Categories including home heating oil, tomatoes, gasoline, coffee and fresh vegetables have seen their prices jump in the past 12 months, according to Johnson.
