From Longman Business Dictionarycost of living indexˌcost of ˈliving ˌindex [countable usually singular]ECONOMICS an index that shows the rate by which the cost of living is changing. It works by comparing the current price of particular goods, for example food or clothing, against the cost of the same goods in previous yearsEarnings per employee rose over four times in that period, while the cost of living index rose only three times. → index
