Your Social Security check could go up another $71 next year. That’s not necessarily good news.

A higher Social Security cost-of-living adjustment (COLA) means beneficiaries would see larger monthly checks. But the same inflation that drives a bigger COLA also erodes the purchasing power those checks are meant to protect. In that sense, a larger adjustment is less a raise than a partial catch-up.

The market relevance runs through interest rates. Persistent inflation can keep the Federal Reserve cautious about cutting rates, which in turn influences bond yields, the dollar, and equity valuations — particularly for rate-sensitive sectors like housing and utilities. For investors, the headline number matters less than what it signals about the durability of price pressures.

What to watch: the official COLA figure when it is announced, the inflation readings that feed into it, and any shift in Fed commentary. For households, the practical question is whether a bigger check keeps pace with their actual costs, especially health care and housing.