cost of living

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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.
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. 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.
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 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.
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.

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 ?
A major conclusion of this research has been that there has been divergence in the economy or that the economy as a whole has become less integrated since 1999 when Pasha and Pasha (2002) computed a similar cost of living index for major cities in Pakistan (2) as standard deviation for the overall index, food and beverage index, apparel and footwear, and rent has increased.
3% NATIONAL DEBT PER HEAD : pounds 5382 COST OF LIVING INDEX : 0%
As you now know, the CPI is not a cost of living index, so COLA is really a misnomer.
The five-person panel recommended Wednesday that the Labor Department develop a new Cost of Living Index to replace the CPI with a more accurate measure.
The distinction was derived through the organization's third quarter ACCRA Cost of Living Index.
Arab News Four Saudi Arabian cities improved their rankings in Numbeo's mid-year assessment of Cost of Living Index.
CoLA, which exist in no other EU country because of its inflationary effects, ensures that wages are automatically adjusted to reflect any increase in the cost of living index, supposedly in order to maintain the purchasing power of wages.
Fahd Al-Tekhefi said that the monthly increase was a reflection of the developments witnessed by seven of the main sectors of the cost of living index, namely: food and beverage sector which registered an increase of 0.
The Numbeo Cost of Living Index 2015 says that on a country-by-country basis, it is more expensive to rent here than in the US, Denmark and France.
Qatar, the UAE and Kuwait claimed the third, fourth and 10th rakings respectively in a cost of living index for the most expensive rents in the world, a report said.
05 ( ANI ): Singapore is the most expensive city in the world, according to the Worldwide Cost of Living Index.
to live, according to the sixth annual cost of living index, a study conducted by the Council for Community and Economic Research.