The cost of living will just keep going up because inflation is necessary in our current, debt based monetary system. The Fed tries to keep this under control by not allowing the rate of inflation to go much beyond about 2% a year. The recent inflation issue we've been having wasn't about inflation suddenly happening where it hadn't been happening before, it was about the rate of inflation increasing beyond the Fed's 2% target. When they talk about inflation getting back under control, they're talking about the rate of inflation getting back to near 2%. But make no mistake: prices are still going up - they have to, that's how the system works - and they will keep going up every year, seemingly indefinitely. For this reason, a cost of living raise equal to at least the rate of inflation is absolutely essential, otherwise workers are getting a pay cut.

But this is further complicated by the fact that the core inflation numbers are very broad. Housing costs are exploding. Core inflation would be much lower if not for rising housing costs. But the way housing costs increases are measured is by averaging housing costs across all markets, meaning the cost of housing in low demand areas is averaged with the cost of housing in high demand areas. This means that if you live in a high demand area, the core inflation rate doesn't necessarily capture the true cost of living in your area, and that the cost of living in your area is going up much faster than the national average. Therefore, many workers need an annual cost of living increase that is much greater than the national inflation rate.

As far as I know, there is no national law requiring companies to give cost of living raises every year. Many companies do, but many don't. A mandatory, annual cost of living raise is something that unions can negotiate, once again showing the value of unions.