Cost of Living

Cost of living is the price for a standard level of a basket of goods and services. It differentiates between countries, regions, and social classes. It is basically the cost of a certain standard of living. There are different statistics that are used to determine the value of cost of living; one is the headcount index, which is described as “the proportion of the population with a standard of living below the poverty line,” relying on per capita income as a measure of wellbeing. However, there are some handicaps related to that index; because of different price levels, a certain income will ensure different standards of living, at different time periods, in different regions. Inflation and deflation are also important parameters; most countries in the ...