cost of living


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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 ?
Roxana Slavcheva, editor of the survey, said: "The relative cost of living has declined over the past 12 months across the Gulf states in all cities, except Abu Dhabi where it has stayed stable.
The survey shows that the cost of living in Beirut is higher than in New York City, Lausanne and Shanghai, and lower than in Singapore, Seoul and Zurich.
The fact that wages are low relative to the cost of living speaks to the fact that college towns are nice places to live.
Although it has low crime rates and good weather, the negatives are glaring: very high cost of living, below average well being, below average walkability, high taxes, below average health care quality and poor culture.
The problem is that Bahrain always tries to stay low on the cost of living, so that there isn't a sort of inflation,'[euro]oCi he said.
The Cost of Living Middle East's Head of Analysis, Rebecca Wilson, believes that these changes have caused the wage disparity between different ethnicities in the UAE to decrease.
The survey of over 2,000 adults found their biggest concern was a "broken society", as well as the cost of living, crime and violence.
The cost of living for households where the main occupant is aged 65 to 74 has risen by 1.
I disagree with the premise that the cost of living has not gone up for seniors this year.
In general, we found that while data suggest that the cost of living is higher in some areas than in others, the current aid formula accounts for these differences in only a limited way.
Mercer's Cost of Living survey measures the comparative cost of 200 items including housing, food, transport, clothing, household goods and entertainment, in each of the cities covered by the survey.
Dubai: News that Dubai is now in the top 20 list of the latest Cost of Living Survey and the most expensive city in the Gulf, may or may not come as a surprise to most expatriates.