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.
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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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
After the two most recent union contracts were finalized, Commissioner Faye Stewart proposed that the county consider providing nonunion employees a cost-of-living increase as well, at a board meeting in late October.
Triplett, Jack E., 2001, "Should Cost-of-Living Index Provide the Conceptual Framework for a Consumer Price Index?" The Economic Journal, 111, F311-F334.
However, since salary is generally the largest element in a compensation package, being aware of the impact of cost-of-living on buying power in different locales gives the job hunter an edge.
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.
Generally, the hypothetical tax liability computation does not include assignment-related compensation (e.g., housing, cost-of-living allowances, etc.).
The Relocation Calculator is provided free online by the Center for Mobility Resources, a private, 10-year-old executive relocation service that maintains regularly updated cost-of-living indexes for more than 500 cities.
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.
A researcher who uses the appropriate superlative index number formula will obtain exactly the same index value from observable data on prices and on the composition of the market basket in the time periods being compared as a researcher who knows the true values of the coefficients in the cost-of-living function.
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 .8 percent, the biggest rise since the previous January.
The enthusiasm for cost-of-living allowances is seen as part of a growing trend.
The Economist's data team (https://www.economist.com/graphic-detail/2018/03/15/asian-and-european-cities-compete-for-the-title-of-most-expensive-city) compiled statistics from major cities around the world in 2017 to generate a cost-of-living index for each one.
Summary: JEDDAH: Foreign workers contracted by various government bodies will by paid the 15 percent cost-of-living allowance on equal footing with their Saudi colleagues, local daily Al-Watan reported Friday, citing the Ministry of Finance.