Cost of Living Adjustment
Definition
COLA. An annual adjustment in wages to offset a change (usually a loss) in purchasing power, as measured by the Consumer Price Index. The Consumer Price Index is used rather than the Producer Price Index because the purpose is to offset inflation as experienced by the consumer, not the producer.
 Cite this definition
'Cost of Living Adjustment
' appears in the definitions of these terms on BusinessDictionary.com
automatic cost of living adjustment, cost of living allowance (COLA)
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