When does a cost-of-living allowance (COLA) automatically raise the wage rate?

Name: When does a cost-of-living allowance (COLA) automatically raise the wage rate?
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Quizplus · Accepted Answer

A cost-of-living allowance (COLA) automatically raises the wage rate when the consumer price index (CPI) increases. The CPI is a measure of inflation and rising prices, and a COLA is designed to help workers keep up with the rising cost of living. If the CPI increases, the COLA will automatically increase wages to keep pace with inflation.

When Does a Cost-Of-Living Allowance (COLA) Automatically Raise the Wage