Cost of living

Cost of living is the amount of money it costs just to live in a certain place. It is measured using a list of things people need, like food and housing. Governments measure cost of living to give welfare (money or benefits for poor people) and to set minimum wage.

When the cost of living is higher than people can pay, a cost of living crisis happens. Causes for a cost of living crisis can be poverty, people making less money due to inflation, increased cost of needed items, and problems with the economy. This crisis can cause health effects right away and in the future.

Category:Economic indicators