The current Consumer Price Index shows a -0.7% rate of inflation for the first three quarters of 2010. The CPI is the determining factor for the annual COLA for VA Disability Compensation and pensions, Military Retirement, and Social Security. Based on the current CPI rate it appears that 2011 will mark the second year in a row without a Cost of Living Adjustment.
This form of Cost of Living Adjustment differs from the Active Duty Cost of Living Allowance which is paid based on the cost of living in a given high-cost locality. This number will be released in late December.