Annual Cost Of Living Increase For 2025. As of early 2025, the monthly inflation rates had yet to return to the high levels seen in 2022. The cola in 2025 was 8.7 percent — the highest in more than 40 years as inflation soared — but dipped to 3.2 percent in 2025 as price pressures cooled:
This followed a 5.9% increase in 2022, which was the highest in four decades at the time it. In 2025, the cola increased by 8.7%, its largest increase since 1981.
