The Social Security Administration said Wednesday that Social Security benefits will increase by 5.9 percent in 2022, and that increase will affect an estimated 70 million Americans.
The increase in the cost of living comes from the steepest rise in consumer prices in the United States in recent years. The adjustment is due to the Labor Department’s CPI, which rose 5.4 percent in September from a year earlier.
Inflation has accelerated this year as the global economy has recovered from the isolation caused by the pandemic. Initially, the rise in prices was driven by a rebound in the prices of air tickets, fares and other goods, the demand for which fell sharply in 2020. Recently, product shortages or problems getting them to consumers have increased profits.
The rise in prices in September was due to the fact that house prices strengthened and food – especially meat and eggs – became more expensive for consumers.
The Social Security adjustment is the largest in four decades, AARP Executive Director Jo Ann Jenkins said in a statement following the announcement.
“The guaranteed benefits provided by Social Security and the COLA increase are more important than ever as millions of Americans continue to face the health and economic consequences of the pandemic,” said Ms Jenkins.
This is an evolving story. Keep for updates.