Social Security Cost of Living Increase Will be 5.9% in 2022

Social Security benefits will increase 5.9 percent in 2022, the Social Security Administration said on Wednesday, the biggest boost in 40 years as prices for food, cars and rent continue to surge.

The increase, known as a cost of living adjustment, is the largest since 1982 and will affect nearly 70 million recipients, according to data from the Social Security Administration. It comes as consumer prices in the United States have seen their sharpest increase in years. The adjustment is tied to the Labor Department’s Consumer Price Index, which rose 5.4 percent in September from a year earlier.

Inflation has accelerated this year as the global economy recovers from pandemic-driven lockdowns. Early on, the price gains were driven by rebounding airfares, rates and other items that had seen a collapse in demand in 2020. More recently, shortages of products or challenges transporting them to consumers have added to the gains.

Consumer Price Index

Keep reading this article on The New York Times Business.

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