Bureau of Labor Statistics to Release September CPI for 2026 Social Security COLA Calculation Amid Government Shutdown

What's Happening?

The Bureau of Labor Statistics (BLS) has announced that it will release the September Consumer Price Index (CPI) on October 24, allowing the Social Security Administration to calculate the 2026 cost-of-living adjustment (COLA). This decision comes despite the ongoing government shutdown that began on October 1. The COLA announcement, originally scheduled for October 15, was delayed due to the shutdown. The COLA is based on the average annual increases in the CPI for urban wage earners and clerical workers from July through September. The latest estimate suggests a 2.8% increase in Social Security checks, translating to a $52 monthly increase for beneficiaries. In August, the average monthly benefit was $1,864.87. The BLS clarified that no other data releases will occur until regular government services resume.

Why It's Important?

The timely release of the CPI data is crucial for the Social Security Administration to meet statutory deadlines and ensure accurate and timely payment of benefits to over 74.5 million recipients. The COLA adjustment directly impacts the financial well-being of retirees, disabled workers, and other beneficiaries who rely on Social Security for their income. The government shutdown has raised concerns about delays in other economic data releases, which could affect financial markets and economic planning. The situation underscores the importance of government operations in maintaining economic stability and the potential consequences of political impasses.

What's Next?

The BLS's decision to release the CPI data for COLA calculation is an exception during the shutdown, highlighting the importance of Social Security payments. However, other economic data releases, such as retail sales and industrial production reports, remain postponed until the government reopens. The ongoing shutdown may lead to further delays in economic reporting, affecting market forecasts and policy decisions. Stakeholders, including economists and policymakers, will be closely monitoring the situation to assess the impact on economic planning and public services.