Cost of living is a measure of income against the amount of money required to maintain a standard of living to which one is accustomed. It is, therefore, necessary to examine expenses related to all facets of life when comparing cost of living.
Major factors to consider as part of a cost of living comparison include housing and related expenses, such as utility payments. Medical care and prescriptions are another cost of living expense. It is also necessary to compare how much a consumer can expect to pay for common food items, such as milk, eggs, butter or a pound of meat. Finally, the cost of lifestyle related activities, such as entertainment and eating out, should also be weighed when comparing the cost of living between countries.