2025 VA Disability Rates: What are the Chances For COLA Increase?

Remember, the 2025 Cost Of Living Adjustment takes effect December 1, 2024, and starts January 1, 2025.

2025 VA Disability Rates: One of the most important compensations in the United States is the VA disability compensation rate, and there is always speculation about what the increase will be.

It will increase for the next period, if you’re wondering.

In case you forgot, the 2025 Cost Of Living Adjustment will take effect come December 1, 2024, payable beginning January 1, 2025.

After this year’s interesting and surprising March CPI report, the prediction for the COLA new period continues to rise.

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There seems to be a strong inflationary pressure in the country’s economy that has emerged more than anticipated.

Even though everything indicates the trend will stay on the rise, it is highly unlikely that it will change.

Will There Be a COLA Increase?

According to current projections, the Cost Of Living Adjustment for 2025 may even be higher than 3.0%.

A Cost Of Living Adjustment is calculated automatically to reflect the actual cost of living in the United States over a year.

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As a result, consumers’ spending power is maintained in line with inflation.

This COLA is calculated by comparing the third quarter average Consumer Price Index for Urban Wage Earners and Clerical Workers from 2023 with the third quarter average for the current year.

1% is rounded to the nearest tenth.

You now know how and why all of these predictions are important for consumers all over the country because CPI-W estimates the average change in prices of goods and services purchased by households earning mostly from clerical or wage occupations.

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