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 ?
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.
2001, "Should Cost-of-Living Index Provide the Conceptual Framework for a Consumer Price Index?
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.
Most arise because the basket of goods and services used to compute the cost-of-living statistic gradually becomes dissimilar to the basket of goods and services actually purchased by consumers.
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.
Inevitably, the annual cost-of-living increase became an intrinsic part of that expectation.
Other important settlement terms included incorporation of the existing 43-cent-an-hour cost-of-living allowance into basic wage rates; hourly wage increases of 25 cents in 1989, and average increases of 25 cents per hour in 1990 and 50 cents per hour in 1991; and a 4-year contract, more in line with recent settlements in the industry, rather than the 3-year duration of previous agreements.
Custodian of the Two Holy Mosques King Abdullah recently ordered a 15-percent increase in the basic salaries of Saudis working for the government as a cost-of-living allowance.
Union President Scott Olmos said the proposed agreement would eliminate cost-of-living raises for the duration of the contract.
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.
The differential can be updated annually through a variety of cost-of-living differential calculators and software that can take into account an area's cost of living and area base pay, multiple earning levels and geographic differential data.