Projections show Social Security's Cost of Living Adjustment (COLA) could rise by $71 per month in 2027. But as the wire notes, a bigger check isn't a victory—it is a clear sign that persistent inflation isn't going anywhere.
For venture capital and private markets, persistent inflation means the high cost of capital is structural, not temporary. Higher inflation keeps interest rates elevated, which depresses tech valuations, compresses exit multiples, and raises the hurdle rate for every asset class.
For founders, this is a stark reminder to plan for prolonged capital scarcity: focus on unit economics and cash runway rather than counting on a quick macroeconomic turnaround. For backers investing from £500, sticky inflation means your capital needs to work harder than ever, making rigorous deal selection and downside protection essential.