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The cost of living for most basic goods and services hasincreased by 20% in the past three years.
Nevertheless,consumers say they still feel the pinchdespitefalling inflation and interest rates.
The cost of living illustrates howexpensive or affordableit is to live in a particular place.
When the cost of living increases, it means you oughta spend more money to experience the same lifestyle.
Inflation
Inflationis the rate of increase in prices over a given period of time.
It can be used as a broad measure or narrowly calculated.
Most people are familiar with inflation being used in narrow circumstances.
For example, how much did a carton of eggs cost last year compared to this year?
Government agencies like theU.S.
In contrast, inflation measures more recent price increases.
The cost of living is more expensive today than three years ago.
Both perspectives are correct, but they measure different things.
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