Social Security beneficiaries could see another record cost-of-living adjustment in 2023, based on the latest government data showing persistent high inflation. A popular inflation measure, the Consumer Price Index for All Urban Consumers, known as the CPI-U, was up 8.3% over the past 12 months, staying near 40-year highs, according to April data released recently. Meanwhile, the index the Social Security Administration uses to calculate cost-of-living adjustments each year, the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, increased by 8.9% over the last 12 months.
To be sure, a bigger cost-of-living adjustment for 2023 is not guaranteed.
To calculate the COLA each year, the Social Security Administration compares CPI-W data from the third quarter to the third quarter of the prior year.
If inflation subsides, there is the possibility of a lower adjustment, or even no increase, for next year or in 2024.
Time will tell if beneficiaries will get a COLA, but if there is no adjustment, Medicare cannot raise their rates either.
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