COLA stands for cost of living adjustment. It is similar to inflation, and it is an estimate of costs that change.
We see price increases across the board - the $1 menu at many restaurants is now $1.50 to $2. Think of McDonald's and the "BigMac" theory.
When prices go up, this demonstrate inflation. The actual product didn't change (same oz, same size). That increase of 25% to 100% is because of the current interest rates, supply chain, inflation, and many other factors. We’re looking at your finances, but we’re also looking at the costs around the world.
The Dollar Tree is now $1.25 (same name, increased price). Store prices in Flagstaff could be higher, as our minimum wage is higher than most of the United States. We pay a higher price (and pay a higher wage).
For Retirees - what is in store?
For retirees, the cost of living adjustment (COLA) for 2023 was 8.7% which increased the average for social security beneficiaries by more than $140 per month.
The overall inflation rate between 2023 can be expected to be 3.7%
In 2024, it is expected to increase 3.2%, so what does that mean for people without Social Security?
The annual Inflation rate for 2022 was at 6.5%, annual inflation rate for 2023 was 3.7%, and the projected inflation rate for 2024 is 2.5%, according to CBS News.
Minimum wage in Flagstaff also increases again in January - so what does this mean to us?
