A cost-of-living adjustment (COLA) is an increase to one’s benefits or pay based on the increasing cost of living in terms of goods and services. The increasing cost of living is also known as inflation. COLAs aim to counteract inflation, at least in part. Although not every form of monthly compensation will include a COLA, VA disability benefits do. In fact, the 2023 VA disability rates have noticeably increased due to the cost-of-living adjustment.