Definitions for "Cost of Living Adjustment"
Keywords:  wage, cola, pace, cpi, inflation
A systematized adjustment of Social Security benefits to keep up with inflation.
An annual adjustment in wages to offset a change 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.
A monetary increase based on current economic trends.  Some decedent estate values are adjusted annually according to this factor.