How To Determine The Cost Of Living

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How To Determine The Cost Of Living
How To Determine The Cost Of Living

Video: How To Determine The Cost Of Living

Video: How To Determine The Cost Of Living
Video: Measuring the Cost of Living 2024, December
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The subsistence minimum is the cost of the minimum set of food and non-food goods and services that are necessary only to support human life and ensure the safety of his health. Those products and services that are included in this set are called the consumer basket. You can determine the cost of living by knowing the composition and cost of the consumer basket.

How to determine the cost of living
How to determine the cost of living

Instructions

Step 1

The composition of the consumer basket, according to which the subsistence minimum is determined, is approved by law. The legal basis for determining the subsistence minimum is the Federal Law of the Russian Federation of October 24, 1997, No. 134-FZ "On the subsistence minimum in the Russian Federation." In accordance with it, the cost of the consumer basket, the composition of which is approved at least once every five years, is equal to the value of the subsistence minimum.

Step 2

The structure and composition of the consumer basket is determined on the basis of methodological recommendations, in the work on which all-Russian associations of trade unions take part. This document is also approved by the Government of the Russian Federation. The composition of the consumer basket provides for the differentiation of consumers by the main socio-demographic groups: able-bodied population, pensioners and children. In the constituent entities of the Russian Federation, for these groups, the cost of each item on the list is determined, taking into account natural conditions, national traditions and dietary habits for each locality.

Step 3

The cost of the consumer basket for each constituent entity of the Russian Federation is determined quarterly. You can find this information in the media and the Internet. If you do not trust the official statistics, you can determine the cost of living for your region yourself. To do this, write in a notebook a list of those products and services that are included in the current year in the approved consumer basket.

Step 4

How much food and non-food items from the list cost, find out by visiting the stores. Write down these values. The cost of services that are included in the consumer basket: housing, centralized heating, hot and cold water supply, gas and electricity supply, write off the monthly receipt for payment of utilities. Knowing the cost of one trip, calculate the cost of transport services by multiplying it by the standard. Define cultural services and other types of services as a percentage of the total cost of services per month.

Step 5

Calculate the cost of each item on the list of the consumer basket by multiplying the unit cost of the product by the standard given in it. Add up all the resulting numbers, and you will determine the value of the subsistence level for your area at this point in time.

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