cost-of-living adjustment

cost-of-living adjustment definition - finance
A provision in wage contracts or government payments such as Social Security that provides for automatic increases in wages or benefits. Often COLA agreements are linked to the consumer price index (CPI); when the CPI, or inflation, rises, so do the payments.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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