There was no annual adjustment to Social Security benefits for inflation during 2010 or 2011. That's because the 2009 increase of 5.8 percent (announced in November 2008, and considered the "2009" increase at this table) was artifically lifted by the $4 per gallon gas prices seen in the summer of 2008, the period used in the annual inflation adjustment calculation. After gas prices came down, overall prices levels were slightly lower during the next two years.
With that background, it's hard to imagine how a headline writer at the Associated Press, aka the Adminstration's Press, could transform what writer Stephen Ohlemacher accurately described as an "historically small increase" to "among the lowest in years" — unless it's to create a false impression among those who only read headlines that the government is being unduly stingy in disbursing benefits. Excerpts from Ohlemacher's report follow the jump (bolds are mine):