As inflation spikes, Social Security cost-of-living bump could reach 10.5%, report says

Senior citizens and others who rely on Social Security payments will likely receive a big cost-of-living adjustment (COLA) in early 2023, given that the annual hike is based on inflation. But the question is: How big of a boost, and will it actually offset an inflation rate that just reached a fresh 40-year high? 

Consumer prices in June surged 9.1% over the past 12 months — exceeding the forecast from economists for an 8.8% increase. The price hikes were broad-based: Gasoline, food, rent and medical care all rose in June, the government report said on Wednesday.

Because of June's higher-than-expected jump, it's likely seniors will receive a 10.5% adjustment to their Social Security checks in early 2023, the Senior Citizens League, an advocacy group for older Americans, said on Wednesday.