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August CPI-W Rises to 3.5 Percent for Social Security COLA

By Markets Desk · 2026-09-11 · 1 min read
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The Consumer Price Index for Urban Wage Earners and Clerical Workers rose 3.5 percent in the 12 months through August. This figure is the second of three data points required to calculate the 2027 cost-of-living adjustment for over 75.7 million beneficiaries.

The Consumer Price Index for Urban Wage Earners and Clerical Workers rose 3.5 percent in the 12 months through August. The Bureau of Labor Statistics reported this figure on Friday. The index level stood at 328.481 for the month. This specific metric determines the annual cost-of-living adjustment for Social Security recipients. The broader Consumer Price Index for All Urban Consumers increased 0.4 percent from July. On a year-over-year basis, the broader index was 3.4 percent higher.

This report provides the second of three necessary data points for the 2027 adjustment. Only the September CPI-W figure remains outstanding. The final calculation will average the index levels for July, August, and September. This average is then compared to the same period in the previous year. The resulting percentage is rounded to the nearest one-tenth of a percent.

Beneficiary count exceeds 75 million

More than 75.7 million people received Social Security or Supplemental Security Income benefits as of July. The annual adjustment ensures payments keep pace with consumer prices. The 2026 adjustment was set at 2.8 percent. This follows a 2.5 percent increase in 2025 and a 3.2 percent rise in 2024. The 8.7 percent adjustment in 2023 reflected earlier inflation surges.

Projected payment increases for 2027

The Senior Citizens League projected a 3.6 percent COLA for 2027. This estimate is lower than previous forecasts of 3.8 percent. If the final average matches the current trend of 3.45 percent, benefits will rise significantly. The average retired-worker benefit would increase by approximately $71.97 per month. This translates to an annual increase of $863.60.

The current average monthly benefit for retired workers is $2,085.98. A 3.45 percent increase would lift this to roughly $2,157.95 per month. The annual total would reach approximately $25,895.36. The final confirmation depends on the September inflation data. Recipients must wait for the next release to know the exact figure. The source GN markets/inflation (en-US) tracks these economic indicators closely.

Based on reporting by Newsweek, compiled by the Tradingbird desk.

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