Social Security recipients can expect next year’s annual cost-of-living adjustment (COLA) to be the lowest since 2021, following cooler inflation readings in July and August.

On Wednesday, the Bureau of Labor Statistics reported the consumer price index climbed 2.5% year on year. 

Combined with the 2.6% reading in July, and a similar reading expected for September, Social Security beneficiaries are on track to see a payment increase of about 2.5%, according to The Senior Citizens League, an advocacy group. 

That equates to an increase of about $46.80 per month.

While the lower COLA forecast reflects an economy that is enjoying a slower pace of price growth, Social Security advocates say seniors and others on fixed incomes are uniquely affected by the inflationary environment.