COLA Measure Heads Upward

The inflation measure used to determine the January 2003 federal retiree cost-of-living adjustment rose 0.2 percent in January, the first of the four months so far in the current 12-month countdown that did not show a decrease. Because of the declines in the first three months of the count, however, the accumulated COLA still is in negative territory, at -0.5 percent. There will be no reduction in benefits in 2003 even if the COLA count remains negative through the entire 12-month counting period. The drops posted in October-December 2002 will, however, have the effect of offsetting any increases in the remaining months of the counting period, which ends with September’s inflation figure.