FT MarketWatch

Cost of Living Adjustment

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.

Related Terms: 9 Adjustment, Consumer, Consumer Price Index, Flat, Index, Owe, Offset, Price index, Producer Price Index
Other Related Pages: Category: Economy Starting With: C
Semi Related Terms: 461 CLICK HERE TO VIEW
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