Curious asked in Social ScienceEconomics · 1 decade ago

What's considered a standard yearly cost-of-living increase?

Is 3% still considered standard, or have most recent cost-of-living increases reflected a higher annual percentage rate?

7 Answers

  • 1 decade ago
    Favorite Answer

    (From economics class) Wage increases are generally based on the CPI (consumer price index), and tend to be quickly reflected in inflation, which can lead to a cost-of-living/hyper-inflationary spiral. The government (at least in Europe and Canada) tries to keep inflation around 2% per year (by adjusting the bank rate) and it usually stays between 1% and 3% so that would seem like a reasonable cost-of-living increase rate.

    Personally, as a member of a women's union I receive no cost-of-living increases per se; in fact my salary only seems to go up at all when we strike.

  • Anonymous
    1 decade ago

    The COLA calculation is normally based on the annual rate of inflation and the actual calculation varies by employer/union.

  • 1 decade ago

    It actually depends on the country. A 2% increase is fine in a developed country. upto 5% is Ok in a developing country.

  • 1 decade ago

    The COLA cost of living allowance or cost of living index is often compared to the consumer price index.

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  • 1 decade ago

    4% this year.

    The cost of petrolium has risen beyond that among many other items. The average cost of a home has risen beyond that as well.

    Good luck getting that from Most employers.

  • 1 decade ago

    2% or 3%...

  • 1 decade ago

    With my boss it's zero

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