Social Security payouts are adjusted annually for inflation. COLA is based on the Consumer Price Index, which measures year-over-year price changes.
Inflation boosted Social Security payouts by 5.9% in 2021; 2023 should be greater.
Inflation has dropped, but economists still forecast a Social Security hike of 8.7% or more — the largest since 1981, when it was 11.2%.
The COLA is based on the US Bureau of Labor Statistics' Consumer Price Index for July, August, and September.
On Sept. 13, the government reported August inflation at 8.3%, down from 8.9% in July. October 13 will provide September's CPI.
After evaluating September's figures, the SSA will announce the COLA increase.