Inflation has been in the news a lot over the past few years. Inflation is the general rise in prices, and results in a decline of purchasing power, meaning your money doesn’t buy what it used to. The military is somewhat protected from the effects of inflation by the typical annual increases in basic military pay, BAS, and BAH. Military retiree pay, Veterans benefits, and Social Security benefits are protected by a Cost of Living Adjustment (COLA) based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
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