A Big COLA Increase? Not So Fast - Motley Fool
Here we go again – various pundits trying to look into their crystal ball and predict what next year’s Cost of Living increase will be. On top of the 5.9% increase awarded for 2022, some are suggesting that the next increase could be even more – as much as 11% for 2023. So, let’s get real: COLA is based on changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), comparing this year’s 3rd quarter CPI-W to the CPI-W for the 3rd quarter of last year. The difference becomes the COLA for the following year. These early projections, while they make great headlines, aren’t based on any hard data because the measurement period for next year’s COLA has only just started. It’s better to take a more moderate and reasoned view of the potential 2023 Cost of Living Adjustment, as is done in this Motley Fool article by Keith Speights. Click here to read more.