Cost-of-living adjustments (COLAs)are typically based on which index?
A)Producer Price Index
B)Consumer Price Index
C)Employment Cost Index
D)Employee Benefit Index

Question

Quizplus · Accepted Answer

Cost-of-living adjustments (COLAs) are typically based on the Consumer Price Index (CPI), which measures the average change over time in the prices paid by urban consumers for a basket of goods and services. This index is often used as a benchmark for inflation and is used by the government to adjust various benefits and payments, including Social Security benefits and federal tax brackets, among others.

Cost-Of-Living Adjustments (COLAs)are Typically Based on Which Index