Okuzeka
Economics vocabulary · Inflation and Prices

Cost of living

Meaning in economics, with examples

nounCore term

In economics, cost of living means: The amount of money people need to pay for basic needs such as housing, food, transport and energy in a particular place and time.

In Turkish: hayat pahalılığı, geçim maliyeti, yaşam maliyeti

How it is used

Very common in British and international news, especially the phrase cost-of-living crisis for periods when prices rise faster than wages. Also used to compare cities: the cost of living in Istanbul. It is hyphenated before a noun: a cost-of-living adjustment.

Example sentences

  1. The rising cost of living is the main concern for most households in the survey.

  2. Public sector workers will receive a cost-of-living adjustment twice a year.

Common collocations

  • the rising cost of living
  • cost-of-living crisis
  • cost-of-living adjustment
  • high cost of living
  • inflationA general and continuing rise in the prices of goods and services in an economy, which means each unit of money buys less over time.
  • purchasing powerThe amount of goods and services that a sum of money or an income can buy; it falls when prices rise faster than incomes.
  • consumer price indexA measure of the average change over time in the prices that households pay for a fixed basket of goods and services, used to calculate inflation.
  • wageThe money a worker is paid for their work, especially when it is calculated by the hour, day or week.

More terms: Inflation and Prices

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This page explains English vocabulary for learners. It is not financial advice.