Numbeo provides a series of cost of living indices that compare various aspects of living expenses in cities worldwide, using New York City (NYC) as the baseline with an index value of 100%. Here's a detailed explanation of each index:
Cost of Living Index (Excl. Rent): This index measures the relative prices of consumer goods and services—including groceries, dining, transportation, and utilities—but excludes housing costs like rent or mortgage payments. For example, a city with a Cost of Living Index of 120 suggests that everyday expenses are 20% higher than in NYC, excluding rent.
Rent Index: This index evaluates the average cost of renting apartments in a city compared to New York City. An index value of 80 indicates that rental prices are approximately 20% lower than those in New York City.
Groceries Index: This index assesses the cost of grocery items in a city relative to New York City. It is calculated using the weighted prices of various food items commonly found in the "Markets" section of Numbeo's database.
Restaurants Index: This index compares the prices of meals and beverages in restaurants and bars between a given city and New York City, reflecting dining out expenses.
Cost of Living Plus Rent Index: This comprehensive index combines the costs captured in the Cost of Living Index and the Rent Index, providing an overall comparison of both everyday expenses and housing costs relative to New York City.
Local Purchasing Power: This index indicates the relative purchasing power of residents in a city based on the average net salary. A value of 40 implies that, on average, residents can afford 60% fewer goods and services than those in New York City earning an average salary.
These indices offer valuable insights into the economic conditions of different cities, assisting individuals and organizations in making informed decisions about relocation, travel, or business operations.