cost-of-living index
Học thuậtThân thiện
Definition
- Noun:
- An index of the cost of all goods and services to a typical consumer: A statistical measure that tracks changes over time in the prices of a fixed basket of goods and services typically purchased by households. It is used to gauge inflation and the relative expense of maintaining a standard of living.
Usage
- The cost-of-living index is a key economic indicator.
- Governments and economists use the cost-of-living index to adjust salaries, pensions, and social security benefits.
- A rising cost-of-living index indicates inflation, meaning consumers need more money to buy the same items.
Examples
Advanced Usage
- "to be indexed to the cost-of-living index": Describes payments or contracts that are automatically adjusted based on changes in this index.
- The union contract stipulates that wages will be indexed to the cost-of-living index.
Variants and Related Words
- Consumer Price Index (CPI): A very common and specific type of cost-of-living index calculated by national statistical agencies.
- The CPI is the primary cost-of-living index used in the United States.
- Inflation rate: The percentage change in a price index, such as the cost-of-living index, over a period.
- Purchasing power: The value of money as measured by the quantity of goods and services it can buy, which is inversely related to the cost-of-living index.
Synonyms
- Price index: A general term for an index measuring the average change in prices.
- Consumer price index: A direct synonym for the most common form of this index.
Related Phrases
- Cost-of-living adjustment (COLA): An increase in income (e.g., wages, benefits) intended to offset inflation as measured by the cost-of-living index.
- Employees received a 2% COLA based on the rise in the cost-of-living index.
- Cost of living: The general phrase for the amount of money needed to sustain a certain standard of living, including basics like housing, food, and taxes. The measures changes in this cost.
Noun
- an index of the cost of all goods and services to a typical consumer