Cost of living is the cost of maintaining a certain standard of living.
Changes in the cost of living, over time, are often reflected in a cost of living index. In Malta, cost of living calculations are based on the prices of 40 products including food, water and electricity, clothing, etc. which are monitored to compare the inflation rate which would need to be adjusted as the cost of maintaining a certain standard of living.
Differences in cost of living between locations can also be measured in terms of purchasing power parity rates. In Malta the % inflation rate rose from 0.64 in 2016 to 1.37 in 2017 (NSO).