As an example, a military retiree who receives $2,500 in retired pay will see a COLA increase of about $70 a month. For a veteran receiving $1,500 per month in benefits, the increase would be about $42 in 2026.

Congress is locked in a fight over funding that has resulted in the second-longest government shutdown in U.S. history. Senate Democrats have blocked measures to fund operations, demanding that Republicans agree to extend tax credits under the Affordable Care Act and other healthcare fixes.

The better than expected inflation data will help the chancellor and Bank of England, but there are challenges to overcome on tackling price growth in the long term.

The DWP have not announced any continuation of the Cost of Living Payment scheme that ran between 2022 and 2024. The final payment should have been made to eligible households between 6 February and 22 February 2024.

Methodologies for determining cost of living vary, but often account for grocery items, housing, utilities, transportation, health care, etc.