cost of living

(redirected from Cost of living index)
Also found in: Dictionary, Thesaurus, Legal, Financial, Acronyms, Wikipedia.
Related to Cost of living index: consumer price index, Cost Of Living Adjustment

cost of living,

amount of money needed to buy the goods and services necessary to maintain a specified standard of livingstandard of living,
level of consumption that an individual, group, or nation has achieved. The evaluation of a standard of living is relative, depending upon the judgment of the observer as to what constitutes a high or a low scale.
..... Click the link for more information.
. The cost of living is closely tied to rates of inflationinflation,
in economics, persistent and relatively large increase in the general price level of goods and services. Its opposite is deflation, a process of generally declining prices. The U.S.
..... Click the link for more information.
 and deflation. In estimating such costs, food, clothing, rent, fuel, lighting, and furnishings as well as expenses for communication, education, recreation, transportation, and medical services are generally included. The Consumer Price Index (CPI), a measurement of the cost of living prepared by the U.S. Bureau of Labor Statistics, tracks changes in retail prices of an average "market basket." Changes are compared to prices in a previously selected base year, from which figures the percentage increase or decrease in the cost of living can be calculated. In addition to changes over time, such analyses must also consider regional variations in the cost of living, and the relative weighting of the components of the index must be reappraised periodically. The CPI is based the spending habits of 14,000 households that are considered representative of the U.S. urban and metropolitan population; data collectors collect and compile some 80,000 price quotes monthly. The first attempt to gather data on the cost of living in the United States was made by the Bureau of Labor Statistics in 1890. The dramatic increase in the rate of inflation during the 1970s led to the widespread use of cost-of-living adjustments (COLA) in wage agreements, real estate leases, and such government benefits as social security. These adjustments are often made using the CPI.

Bibliography

See bibliography under standard of livingstandard of living,
level of consumption that an individual, group, or nation has achieved. The evaluation of a standard of living is relative, depending upon the judgment of the observer as to what constitutes a high or a low scale.
..... Click the link for more information.
.

cost of living

1. 
a. the basic cost of the food, clothing, shelter, and fuel necessary to maintain life, esp at a standard regarded as basic or minimal
b. (as modifier): the cost-of-living index
2. the average expenditure of a person or family in a given period
References in periodicals archive ?
7 was derived implying that relative to 1999, cities with a relatively high cost of living index have now become cheaper.
4% NATIONAL DEBT PER HEAD : pounds 13,857 COST OF LIVING INDEX : 1.
The pressure has seen the all-important cost of living index rise above the govern-ment's 2% target for most of the year.
Pensions have gone up with inflation, which is not the same as the cost of living index.
10 on a list of 324 urban areas participating in ACCRA's Cost of Living Index for the fourth quarter of 2004.
A regional cost of living index including housing costs for owner-occupiers is therefore going to be rather arbitrary.
Tokyo's cost of living index is four times that of Asia's chepeast, New Delhi, the EIU said.
23 per week on the single person's pension comes because the high cost of fuel has hiked up the cost of living index.
The purpose of the present paper is to provide a conceptual definition of an extended cost of living index and to provide and exploratory application of the concept to include a limited number of goods and services.
The category, which comes under the cost of living index for measuring inflation rates, has risen by 1.
According to Expatistan's annual Cost of Living Index, London was a surprise as it usurped Oslo as the most expensive city in the world.
Ronan Hegarty, of magazine The Grocer, which helped compile our cost of living index, said beer "will continue to be value for money as the World Cup edges closer".