Biggest Military Pay Raise in 20 Years may be Boosted Even More Because of Inflation Worries

Service members are in line for their biggest pay raise since 2003 next January, but lawmakers and advocates are questioning whether that will be adequate to keep military families in good financial health.

That’s because the formula used to calculate annual pay hikes doesn’t take into account issues like short-term inflation spikes. The Congressional Budget Office has predicted a 6.1% jump in the consumer price index this year, but none of that extra expense is built into the military pay raise formula.