"You're probably aware that we're in the midst of a government shutdown. Part of that shutdown impacts the Bureau of Labor Statistics, which releases inflation data. The Social Security Administration needs third-quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to be able to determine a 2026 COLA. Since that data wasn't released on October 15, a COLA could not be announced, either."
"The Social Security Administration needs to know what next year's COLA is by November 1 to ensure that benefits are given the right adjustment in the new year. But the Bureau of Labor Statistics has announced that it will release CPI-W data on October 24. Even though that's nine days later than when it was supposed to have that data ready, it's still enough time to apply a COLA to 2026 benefits."
The government shutdown delayed the Bureau of Labor Statistics' release of CPI-W third-quarter data, preventing the Social Security Administration from announcing a 2026 COLA on October 15. The BLS plans to publish the CPI-W on October 24, and the SSA must know the COLA by November 1 to adjust benefits for January. Because the CPI-W release will occur before the SSA's deadline, beneficiaries can expect COLA adjustments to be applied on schedule in January. Estimates project a 2026 COLA of roughly 2.7% to 2.8%, which may not fully offset ongoing inflation and could result in limited additional buying power.
Read at 24/7 Wall St.
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