New York Times: “Benefits from Social Security, which tens of millions of retired Americans rely on to pay their bills, will increase by 5.9 percent in 2022, the Social Security Administration said on Wednesday. It is the biggest boost in 40 years as prices for food, cars and rent keep climbing. The increase, known as a cost of living adjustment, is the largest since 1982, when the adjustment was 7.4 percent, according to data from the administration. The average benefit — 70 million Americans receive them — would climb to $1,657 a month, up $92 from this year.
“The adjustment is a response to consumer prices in the United States that have jumped at their fastest pace in years. It is tied to the Labor Department’s Consumer Price Index, which rose 5.4 percent in September from a year earlier. Inflation has accelerated this year as the global economy recovers from pandemic-driven lockdowns. Early on, the price gains were fueled by rebounding airfares, restaurant meals and other items whose demand collapsed in 2020. More recently, shortages of products and supply-chain challenges have added to the gains.
“Consumer Price Index data released on Wednesday showed that prices jumped more than expected last month. Housing prices firmed, and food — especially meat and eggs — cost consumers more. The maximum amount of a worker’s earnings subject to the Social Security tax will also increase, to $147,000 from $142,800, the administration said.”