Projected 2027 Social Security cost of living adjustment down slightly after inflation report

Following news that the annual inflation rate for the U.S. economy fell slightly last month, an estimate for the impending Cost of Living Adjustment (COLA) for Social Security recipients decreased slightly. 

Estimates by The Senior Citizens League, a seniors' advocacy group, expected a 3.8% increase in Social Security for the coming year, but the organization cut that to 3.6%, which is still in line with estimates the group has released all year, The Hill reported. 

The annualized inflation rate in July was 3.4%, compared to 3.5% in June, according to the report, issued by the department's Bureau of Labor Statistics.

If The Senior Citizens League's projection turns out accurate, the 2027 COLA will be the highest in four years, the group noted. 

“Seniors don’t experience inflation as a percentage on a chart. They experience it at the grocery store, at the pharmacy, in their insurance premiums and when they pay the rent. That’s why the size of the COLA matters, but so does how accurately it reflects their real-world expenses," the group said in a statement.