So you are not confused in the future, COLA is actually Cost Of Living Adjustment; not Allowance. Just a minor verbal technicallity.

Definition:
An annual adjustment in wages to offset a change (usually a loss) in purchasing power, as measured by the Consumer Price Index (CPI). The Consumer Price Index is used rather than the Producer Price Index (PPI) because the purpose is to offset inflation as experienced by the consumer, not the producer.