cost of living

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Definition
  1. Noun:
    • The average amount of money a person or household needs to pay for basic necessities: This includes essential expenses such as food, housing (shelter), clothing, transportation, healthcare, and utilities in a specific place and time.
    • An economic indicator: The cost of living is a measure used to compare how expensive it is to live in different cities or countries, and its changes over time are linked to inflation.
Usage Examples
  • Noun:
    • The high cost of living in the city forces many people to commute from the suburbs.
    • A fixed income is difficult to manage when the cost of living increases every year.
    • The company offers a cost-of-living adjustment to salaries based on the employee's location.
Advanced Usage
  • "Cost-of-living allowance (COLA)": An additional payment made to employees to compensate for differences in the cost of living, especially when relocating to a more expensive area.

    • The expatriate package includes a generous cost-of-living allowance.
  • "Cost-of-living index": A theoretical price index that measures the relative cost of living over time or between regions.

    • The government publishes a monthly cost-of-living index.
Variants and Related Words
  • Living costs (n): Often used interchangeably with "cost of living."

    • Rising living costs are a major concern for families.
  • Cost-of-living adjustment (n): A specific increase in wages or benefits tied to an official measure of inflation.

    • Retirees received a 2% cost-of-living adjustment this year.
Synonyms
  • Expenses of daily life: The money required for everyday needs.
  • Household expenses: The costs associated with maintaining a home.
Related Phrases
  • Standard of living: The level of wealth, comfort, and material goods available to a person or community. (Note: This is related but distinct, focusing on quality rather than just cost.)
    • A high cost of living does not always guarantee a high standard of living.
Notes on Meaning

The term "cost of living" specifically refers to the financial expense of basic necessities. It is a collective, singular noun phrase. It is different from "living cost," which is less common and can sometimes refer to a single expense related to living. The primary focus is on the aggregate, average cost required for a typical standard of life in a given area.

Noun
  1. average cost of basic necessities of life (as food and shelter and clothing)
    • a rise in the cost of living reflects the rate of inflation