How to minimize the impact of Cost of Living Allowance (COLA) on market research prices-Perspective

1. Introduction:This whitepaper focusses on how clients can standardize Cost of Living Allowance (COLA) measure when negotiating with market research suppliers. 2. Main:This paper provides insights on how CPI is the best measure as compared to others like PPI, PCE for calculating COLA. This paper also highlights key markets and scenarios where the impact of COLA would be most pronounced. 3. Recommendation: Procurement teams could look at standardizing COLA calculation methodology by considering 100%CPI as a base for calculating COLA. The procurement team would need to get a detailed breakup of the rate card to take into cognizance various indirect costing apportioned in the rate card items and to ensure unfair COLA (which is well and above actual inflation rates in various markets) is not passed on to them.