cost of living

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Cost of Living

The amount one must pay to maintain one's standard of living. That is, the cost of living measures how much one must spend to finance one's lifestyle. Cost of living varies by area; it may be lower in a small city, for example, than in a large city. Changes to the cost of living are related to, but are distinct from, underlying inflation. For example, gasoline prices may rise faster than inflation, which may increase the cost of living more than inflation itself does.

cost of living

the general level of prices of goods and services measured in terms of a PRICE INDEX. To protect people's living standards from being eroded by price increases (INFLATION), wage contracts and old-age pensions, etc., sometimes contain cost-of-living adjustment provisions that automatically operate to increase wages, pensions, etc., in proportion to price increases. See INDEXATION.
References in periodicals archive ?
But the lack of a cost-of-living adjustment may also mean a double whammy to federal retirees under the Civil Service Retirement System.
The county similarly used those health care savings to provide cost-of-living raises in new three-year contracts signed this fall with the county's sheriff's deputies and the roughly 600 county employees represented by American Federation of State, County and Municipal Employees Local 2831.
Conceptualizing and Measuring Cost-of-Living and Price Indexes," panel on conceptual measurement, and other statistical issue in developing cost-of-living indexes, Charles L.
In theory, cost-of-living changes are measured by envisioning the cost of attaining a certain level of welfare and comparing that cost in different places or different periods of time.
Employees with base salaries below the competitive external market are eligible to receive a raise, depending on their job performance and the cost-of-living increase, and a possible variable pay award based on their individual performance and the company's or department's performance.
At the same time, the Consumer Price Index, the government's main inflation barometer and the key indicator for the year's cost-of-living adjustment, shot up .
The enthusiasm for cost-of-living allowances is seen as part of a growing trend.
The major stumbling blocks to settlement reportedly were pension benefits and cost-of-living adjustments.
Among improvements, the agreement provides for a compounded 12 percent wage increase over the contract term, with a cost-of-living adjustment in the final year, and a 2 percent increase in the pension bands in each contract year, also with a final year cost-of-living adjustment.
The Eugene Police Employees' Association last week agreed to give up six months of a previously agreed to cost-of-living raise, and to accept smaller cost-of-living raises in two future years.
Summary: The April cost-of-living index has risen 1.
5 percent pay raise in January 2007, the mayor and the highest-paid City Council in the nation will get a 5 percent cost-of-living increase.