Next FY Military COLA 4%?
In mid-June, the Bureau of Labor Statistics announced the May 2006 monthly Consumer Price Index (CPI), which is used to calculate the annual cost-of-living adjustment (COLA) for military retired pay, VA disability compensation, survivor annuities, and Social Security.
The CPI continued its upward trend, rising 0.5% in May -- for a total of 2.9% growth so far this fiscal year. A 2.5% increase in energy costs played a key roll in the jump.
Last year, the CPI had risen 2.7% through the month of May and ended the year at 4.1%. With inflation running only slightly ahead of last year's pace so far, it would seem likely that we'll end this year in the same 4% ballpark.
But there's plenty of CPI roller-coaster left to navigate in the next four months, and that outlook could change in a hurry.
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