3.9% Inflation: Why Recent Data is Pushing 2027 COLA Projections Higher
Key takeaways
- The modest 2.8 percent raise that Social Security recipients saw in their checks this January is already starting to feel like a memory.
- This figure is significantly higher than the current cost-of-living adjustment, or COLA.
- The analyst who called NVIDIA in 2010 just named his top 10 AI stocks.
The modest 2.8 percent raise that Social Security recipients saw in their checks this January is already starting to feel like a memory. According to the latest data from the Bureau of Labor Statistics, inflation in April reached 3.9 percent on an annual basis.
This figure is significantly higher than the current cost-of-living adjustment, or COLA. It is fundamentally changing the outlook for what seniors can expect in 2027.
Social Security recipients received a 2.8% raise in January, but April inflation reached 3.9% annually, prompting forecasters like the Senior Citizens League and analyst Mary Johnson to project a 2027 COLA of 3.9% to 4.2%, with the government comparing third-quarter inflation averages to finalize the official adjustment in October.