The projected rise is being driven by higher inflation, particularly in energy, fuel, and grocery prices. Inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), the formula used to calculate Social Security COLAs, climbed significantly in recent months. CPI-W inflation was 2.2% in January and February before increasing to 3.3% in March amid rising energy costs linked to the Iran war. By April, annual inflation had reached 3.8%, the highest level in three years.
