A COLA is an adjustment in wages or benefits intended to offset changes in the cost of living, typically indexed to metrics such as the Consumer Price Index (CPI).
Headline inflation measures the total inflation within an economy, encompassing a broad scope that includes volatile items such as food and energy prices, offering an overall picture of price trends in the economy.
An index is a statistical compilation that puts a current economic or financial condition into context, often by relating it to a base period or another time frame. It is used to measure economic trends over time and can influence adjustments in sectors like wages, rentals, loans, and pensions.
A combination of goods, in statistically derived proportions, used to track price changes. It is used in such indicators as the Consumer Price Index (CPI), and the Producer Price Index (PPI).
A price index traces the relative changes in the price of an individual good, or a market basket of goods, over time. Common examples include the Consumer Price Index (CPI) and the Producer Price Index (PPI).
