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COLA Watch

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July COLA Announced

The Consumer Price Index dipped 0.1 percent in July, falling to 234.525. It now stands 1.8 percent above the FY2014 COLA baseline of 230.327. The July, August, and September CPIs will be used to calculate the 2015 COLA.

Information for the Consumer Price Index for the month of August is scheduled to be released on September 17.     

 

 

COLA chart 


 

COLAs and Military Retired Pay

Government retired pay promises must be kept, including annual cost-of-living adjustments (COLA) to prevent erosion of retirees' purchasing power by inflation.

Retired Pay versus Active Duty Pay Adjustments

Retired pay and active duty pay increases are different in most years because they are based on different compensation principles.