One often-overlooked inflation indicator is the “cost of living” adjustments (COLAs) that are applied to various government programs and contracts. While many people focus on more visible metrics like the Consumer Price Index (CPI) or Producer Price Index (PPI), COLAs reflect the actual changes in purchasing power experienced by individuals, especially those relying on fixed incomes, like retirees. These adjustments can highlight how inflation impacts everyday life, particularly for vulnerable populations who may feel the effects of rising prices more acutely than others. Additionally, indicators like the price of services or housing costs can sometimes go unnoticed, even though they significantly affect overall inflation trends.
One often-overlooked inflation indicator is the “cost of living” adjustments (COLAs) that are applied to various government programs and contracts. While many people focus on more visible metrics like the Consumer Price Index (CPI) or Producer Price Index (PPI), COLAs reflect the actual changes in purchasing power experienced by individuals, especially those relying on fixed incomes, like retirees. These adjustments can highlight how inflation impacts everyday life, particularly for vulnerable populations who may feel the effects of rising prices more acutely than others. Additionally, indicators like the price of services or housing costs can sometimes go unnoticed, even though they significantly affect overall inflation trends.