The Indicator from Planet Money · Friday, August 14, 2026
The July inflation data, specifically the CPI-W, shows a 3.4% increase. This measure is crucial for determining the annual cost of living adjustment for Social Security benefits. Projections from organizations like the AARP suggest an adjustment of around 3.5%, which could provide a notable increase in monthly benefits for retirees.
“My indicator has to do with the July inflation data we got this week from the Bureau of Labor Statistics. Now, we usually talk about the main number, that is an index called CPI U, but for my indicator, I'm going to talk about a different measure of inflation called the CPI W.”
“Now, CPI W is even more narrow. The W stands for urban wage earners and clerical workers, and it was up 3.4% in July.”
“The AARP is projecting a 3.5% adjustment for 2027 based on current inflation trends. That would be an extra 73 bucks a month for the average retired worker.”