What is "a cost-living raise"?

[japanjapan]

Dear teachers,
Please look at the following dialogue:
——Why are you buying that cheaper grade of meat, Cindy?
——Bob didn't get a cost-living raise, so we have to do without a few things now.
I don't understand the expression " a cost-living raise", what is it? If Bob got it, who would pay? his company? or some society agency? How often and according to what is the amount of the money added?
Thanks

[TheMadBaron]

It sounds like it should be a 'cost of living' raise.

Prices are subject to inflation. Items become more expensive, so the cost of living goes up. If your wage/salary doesn't increase accordingly, it becomes harder for you to afford everything you need.

Bob's company should give him a raise (perhaps once a year) in keeping with the rate of inflation.