According to the Military Officers Association of America, the national inflation rate continued trending upward in May. This makes it nine straight months that the Consumer Price Index has ticked upward. This is important for military retirees, and those drawing VA benefits and Social Security, because the CPI is the indicator used to determine the annual cost-of-living-adjustment (COLA) and adjustments to VA Disability and Compensation,Vets Pension, and other VA rates for the following year.
The May CPI was 0.5% bringing the projected CPI for FY2011 to at least 3.4%. Barring any downward trends in teh final four months of the fiscal year retirees will likely see a substantial jump in their COLA next year.
NOTE: The COLA referred to here is the annual cost-of-living-adjustment for retirees. It is not the same as the Cost-of-Living-Allowance for active duty.
Check out MOAA's COLA Watch for the latest trend analysis.
