A cost-of-living crisis refers to a socioeconomic situation or period of high inflation where nominal wages have stagnated while there is a sharp increase in the cost of basic goods, such as food, housing, and energy. As a result, living standards are squeezed to the point that people cannot afford the standard of living that they were previously accustomed to. The population becomes poorer than it used to be in real terms. This is in contrast to a situation in which wages are rising to meet the rate of inflation and workers' standard of living remains unchanged.[1]
As of 2023, there is a cost-of-living crisis in many countries around the world.[2] In February 2023, 3 out of 4 consumers globally were worried about the rising cost of everyday expenses.[3] The Big Issue defines a cost of living crisis as ‘a situation in which the cost of everyday essentials like groceries and bills are rising faster than average household incomes’.[4]
- ^ "Cost-of-Living Crisis: How Does It Impact Companies and…". Euromonitor. 21 November 2022. Retrieved 27 August 2023.
- ^ "What the cost of living crisis looks like around the world". International Rescue Committee. Retrieved 27 August 2023.
- ^ "Euromonitor - A Look at the Cost of Living in 2023". lp.euromonitor.com. Retrieved 27 August 2023.
- ^ Webster, Premila; Neal, Keith (September 2022). "The 'cost of living crisis'". Journal of Public Health. 44 (3): 475–476. doi:10.1093/pubmed/fdac080. Retrieved 4 June 2024.