term cost living index help what is
Meaning of cost-of-living index. What is it: in different cities of one country can be seen in.

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Definition cost-of-living index

COST-OF-LIVING INDEX title: cost-of-living index (PA-GE) (SAP Library - Glossary)
COST-OF-LIVING INDEX category: Management of Global Employees (PA-GE)
COST-OF-LIVING INDEX explained:

Index in which the cost of living in different countries or in different cities of one country can be seen in relation to each other.

The cost-of-living index (COLI) uses a shopping basket to compare the prices of goods and services in the various countries or cities. Since there are no standard guidelines for the content of such a shopping basket, the COLI can vary depending on the organization that calculates it.

Example

A COLI for Germany and USA of 1.8 means that the cost of living in the United States is 1.8 times higher than in Germany. A COLI that compares ten countries with each other sets 100% as the mean of all the countries. If a country has an index of 120%, this means that the cost of living in that country is 20% higher than the average of the ten countries

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