cost of living

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Related to Cost of living index: consumer price index, Cost Of Living Adjustment

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 ?
Because it is exactly equal to Konyus true cost of living index (Konyus, 1924), i.e.,
We then used the relative prices of commodities in every city to construct a weighted relative composite cost of living index ([I.sub.ci]) for every city:
It always seems strange that my index-linked pension never quite matches my cost of living index. I amsure theremust bemanywho aremystified by the way the cost of living index is calculated.
The cost of living index is based on more than 50,000 prices covering almost 60 different items in the following categories: housing, utilities, grocery items, transportation, health care and miscellaneous goods and services.
COUNTRY : UK INFLATION : 2.3% NATIONAL DEBT PER HEAD : pounds 5382 COST OF LIVING INDEX : 0%
The cost of living index stood at 137 for both Tokyo and Osaka against the base index of 100 for New York, it said.
Twenty-eight years later the price is $149, still on the low side for a b-to-b, twice-monthly, but well ahead of the increase in the cost of living index over the period.
Because the cap was tied to a cost of living index, it steadily increased to $235,840 by 1993.
A., The Theory of the Cost of Living Index, New York: Oxford University Press, 1989.
Yet, everyone uses it as if it were a cost of living index; that is, a measure of the change in the cost of living between periods.
The figures compiled by Deutsche Bank of Numbeo figures show Kuala Lumpur's scores in the purchasing power index (31), safety index (51), health care index (38), cost of living index (11), property price to income ratio (16), traffic commute time index (24), pollution index (41), climate index (53).
But if the cost of living index is combined with the rental index, the emirate becomes much cheaper at 45 per cent.