Cost of Living Adjustments (COLAs) are changes made to salaries or benefits to keep pace with inflation and the rising cost of living. These adjustments help ensure that individuals can maintain their purchasing power over time, especially when prices for goods and services increase. Employers, government programs, and pension plans often implement COLAs to support employees and retirees. For example, Social Security benefits in the United States are adjusted annually based on the Consumer Price Index, which measures inflation. This helps recipients manage their expenses in a changing economic environment.