Social Security COLA for 2024 Will Be Meager 3.2%, Likely to Be Outrun by Inflation

October 12, 2023

by Wolf Richter Wolf Street

Cost-of-Living Adjustment for 2024 plunges from 2023 mega-COLA, which outran inflation by a wide margin. This one will fall behind inflation.

The Cost-of-Living Adjustment (COLA) for Social Security benefits for the calendar year 2024 will be 3.2%, according to today’s release of the inflation data by the Bureau of Labor Statistics.

The COLA is based on the Consumer Price Index for All Urban Wage Earners and Clerical Workers (CPI-W). The Social Security Administration uses the year-over-year CPI-W for July (2.63%), August (3.40%), and September (3.56%) and averages them out to obtain the COLA for Social Security benefits for next year, starting with benefits paid in January 2024.