Lawmakers and households watching the cost of living will see Social Security benefits increased by a 2.8% COLA for 2026, the Social Security Administration says.
The SSA’s Oct. 24, 2025 press release says the 2.8 percent cost-of-living adjustment will begin with benefits payable in January 2026 and affect nearly 71 million beneficiaries and SSI recipients.
At the same time, the U.S. Department of Agriculture’s Economic Research Service forecasts overall food prices will rise about 3.0% in 2026, tightening pressure on grocery budgets, according to its Food Price Outlook summary findings.
The ERS summary, updated Aug. 25, 2026, gives a forecast interval for all-food price changes of roughly 2.4% to 3.5% and distinguishes food-at-home and food-away-from-home trends in its documentation.
Together, the COLA and the USDA outlook touch two parts of household expense: income for retirees and the prices everyone pays at the grocery store. The SSA says the COLA is applied to monthly checks starting in January, while ERS projects grocery pressures through the calendar year.
Policy analysts warn that a single percentage-point difference in inflation and benefits can matter for fixed-income households because food is a large share of typical spending for retirees; the SSA fact sheet and ERS documentation outline how the adjustment and forecast are calculated.
For readers tracking next steps, the SSA maintains its COLA fact pages and press releases online, and ERS publishes monthly updates and methodological notes for the Food Price Outlook.
Sources
- Social Security Administration — 2026 COLA press release and fact sheet stating a 2.8% COLA and that it affects nearly 71 million beneficiaries.
- USDA Economic Research Service — Food Price Outlook summary findings forecasting about a 3.0% rise in overall food prices for 2026 and providing the forecast interval and documentation.
