Price-of-living changes (COLAs) are will increase in Social Safety and Supplemental Safety Revenue (SSI) funds to maintain tempo with inflation. The COLA for 2025 will probably be decided in October 2024, based mostly on the Shopper Worth Index for City Wage Earners and Clerical Employees (CPI-W). The CPI-W measures the common change in costs paid by city wage earners and clerical staff for a basket of products and companies.
The 2025 COLA is predicted to be round 5.9%, which might be the most important enhance since 1981. This enhance is as a result of current surge in inflation, which has been pushed by quite a few elements, together with the COVID-19 pandemic, the warfare in Ukraine, and provide chain disruptions. The COLA will assist to make sure that Social Safety and SSI beneficiaries can sustain with the rising value of residing.