Did the Cost of Living Increase in 2014?


Quick Answer

The cost-of-living increased 1.5 percent in 2014. This figure is used as a basis for increasing the amount of Social Security benefits that beneficiaries receive. It is directly related to the Consumer Price Index.

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Did the Cost of Living Increase in 2014?
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Full Answer

This adjustment began in the 1970s, when inflation was very high. The cost-of-living increase is used to protect against the negative effects of inflation. The CPI is measured every month, and the cost-of-living adjustment is made in January each year.

The rate has been as low as 0 percent and as high as 14.3 percent in 1980. Generally, it runs between 1 and 5 percent, but it remained unchanged in 2010 and 2011.

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