Here's How the 2025 Social Security COLA Ranks Historically
The annual Social Security COLA is based on the third-quarter change in the CPI-W, or Consumer Price Index for Urban Wage Earners and Clerical Workers. In July, the index rose 2.9%. In August, it was up 2.4%, and in September, it rose 2.2%. The average of those three months -- 2.5% -- is the basis of the latest COLA.