The 2025 Federal Value-of-Dwelling Adjustment (COLA) is a rise in advantages paid to Social Safety beneficiaries, Supplemental Safety Revenue (SSI) recipients, and sure different federal beneficiaries. The COLA is meant to maintain tempo with inflation and be certain that beneficiaries’ buying energy doesn’t erode over time.
The COLA is calculated annually based mostly on the Shopper Value Index for City Wage Earners and Clerical Staff (CPI-W), which measures the change in costs for a basket of products and companies bought by city wage earners and clerical staff. If the CPI-W will increase from one 12 months to the subsequent, the COLA shall be equal to the proportion enhance within the CPI-W. If the CPI-W decreases or doesn’t change, there shall be no COLA.