Recent data from the Labor Department shows consumer prices rose by 0.2% last month, with an annual increase of 2.4%. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is used to calculate COLA, recorded a 2.2% rise over the past year.
COLA 2025 Predicted to Be Lower Than 2024
Jason Fichtner, chief economist for the Bipartisan Policy Center, noted that while price stability is beneficial for current beneficiaries, Social Security’s trust fund faces a looming crisis.
He warned that without action, the trust fund’s depletion could result in a 20% benefit cut within a decade. Fichtner emphasized that with a new Congress and administration next year, there is an urgent need for bipartisan solutions to address the shortfall.
These figures come shortly after the Federal Reserve’s decision to cut interest rates, a sign of confidence in the ongoing effort to control inflation. Minutes from the Fed’s most recent meeting show optimism about the nation’s economic outlook.