Millions of retirees who receive Social Security benefits will see a 2.5% cost-of-living increase to their monthly checks beginning in January. That word comes Thursday from the Social Security Administration.

Agency officials say the cost-of-living adjustment, or COLA, for retirees translates to more than $50 more on average per retiree every month. About 72.5 million people, including retirees, disabled people and children, get Social Security benefits. The agency’s commissioner says the cost-of-living adjustment will provide a measure of relief for recipients as inflation has cooled.

But Martin O’Malley’s message to those who feel the increase isn’t enough is that “they’re not wrong.”

”I’ve heard the stories and it is a struggle for seniors,” he said.

The agency will begin notifying recipients about their new benefit amount by mail starting in early December. Adjusted payments to nearly 7.5 million people receiving Supplemental Security Income will begin on December 31.

Inflation drops, but pressures remain

Inflation in the United States dropped last month to its lowest point since it first began surging more than three years ago.

Consumer prices rose just 2.4% in September from a year earlier, down from 2.5% in August and the smallest annual rise since February 2021.

Measured from month to month, prices increased 0.2% from August to September.

But excluding volatile food and energy costs, “core” prices, a gauge of underlying inflation, remained elevated in September, driven higher by rising costs for medical care and car insurance. Core prices in September were up 3.3% from a year earlier and 0.3% from August.