Social Security's 2027 COLA Should Be Among the Largest in 35 Years, Thanks to Trumpflation and a First-of-Its-Kind Catalyst

Social Security's 2027 cost-of-living adjustment (COLA) is projected at 3.5%, marking the sixth-largest raise since 1993. Two factors are driving this increase: Trumpflation (inflation from Trump administration policies including tariffs and the Iran war affecting energy prices) and the AI infrastructure build-out, which is straining semiconductor and hardware supply chains, creating pricing power for AI companies but raising consumer costs for electronics.