The 2014 Social Security COLA is based on the increase in the CPI-W from 2012 to 2013 for the months of July, August and September.
The average for July and August 2012 is 226.312
The average for July and August 2013 is 230.221
The difference is an increase of 1.727. This indicates a Social Security COLA of about 1.7% The calculation is rounded to the nearest 1/10th of one percent.
Remember, we still need September 2013 to complete the calculation. That number will be available around October 15 and the actual COLA will be determined.