Let us clarify what is called the cost of living.
The cost of living is required to cover essential expenditures such as accommodation,
meals, taxes and healthcare in a given place and period. The cost of living is usually used to
approximate how expensive it is to live from one city to another. The cost of living is trying to
wages. If charges are higher in a particular town under consideration, wage levels must be
higher to enable people to live in that city.