cost of living


cost of living

Monetary cost of maintaining a particular standard of living, usually measured by calculating the average cost of a number of goods and services. Measurement of the cost of a minimum standard of living is essential in determining relief payments, social-insurance benefits, and minimum wages. The cost of living is customarily measured by a price index such as the consumer price index. Measurements of change in the cost of living are important in wage negotiations. Cost-of-living measurements are also used to compare the cost of maintaining similar living standards in different areas. See also social insurance.

This entry comes from Encyclopædia Britannica Concise.
For the full entry on cost of living, visit Britannica.com.

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