The federal authorities cost-of-living adjustment (COLA) for 2025 is a cost-of-living adjustment that will likely be utilized to Social Safety advantages and different federal packages. The COLA is calculated primarily based on the Shopper Worth Index for City Wage Earners and Clerical Employees (CPI-W), which measures the change in costs for quite a lot of items and providers bought by city wage earners and clerical employees. The COLA is designed to assist shield the buying energy of Social Safety and different federal advantages from the consequences of inflation.
The 2025 COLA is predicted to be one of many largest lately, as inflation has been rising sharply in 2022 and 2023. The precise quantity of the COLA is not going to be identified till the CPI-W knowledge for December 2024 is launched in January 2025. Nonetheless, some specialists are predicting that the COLA may very well be as excessive as 5% or 6%.