Cost of Living Indices
1. Different cost of living indices
Extensive studies carried out by EuroCost International have shown that people living abroad for a prolonged period will modify their habits to suit local conditions.
Our knowledge of such behaviour has led us to propose three different kinds of indices:
- - The Home Based index : It is calculated on the basis of the consumption pattern of the home city. It is usually used for short-term expatriations or for expatriations to countries where lifestyle differs radically from the one in the home country.
- - The Adapted expenditure index : It takes into account the consumption patterns in both the home and foreign cities. It can be applied without restriction and presents advantages for successive international expatriations since it is the only reversible index.
- - The Host Based index : It is calculated using the consumption pattern of long-term expatriates. It might be used for very long-term assignments to countries geographically and/or culturally close to the country of origin.
