There is always speculation on what the increase on many compensations will be in the United States and one of the most important ones is the VA disability compensation rate. If your are wondering if it will increase for the next period, the answer is yes.
The current 2025 Cost Of Living Adjustment increase estimate is a 3.0% and in case you forgot, it will come in effect come December 1, 2024, payable beginning January 1, 2025.
The prediction for the COLA new period once again continues to increase after the interesting and surprising March CPI report in the current year. Everything seems to be caused due to inflationary pressure in the countrys economy that has emerged more than originally expected.
Yes, its true that everything indicates the trend will stay on the rise, and even though things could change as everything else, its highly unlikely it will be modified. Should it stay as it is, the Cost Of Living Adjustment for 2025 has a chance to even go higher than the current projection of 3.0%.
What is the COLA compensation?
A Cost Of Living Adjustment is calculated each year automatically and the point of doing so is to reflect the change of what it actually costs for a person to live in the United States over a year period.
The main reason this is done is to help consumers maintain their spending power relative to inflation. The COLA is based on the percentage increase from the highest third quarter average Consumer Price Index for Urban Wage Earners and Clerical Workers recorder from 2023 compared to the average CPI-W for the third quarter of the current year. The percentage increase is rounded to the nearest one-tenth of 1%.
The CPI-W is an estimate of the average change in prices of the goods and services purchased by households whose incomes come primarily from clerical or wage occupations, so now you know how and why all of these predictions are important for consumers all over the country.
