Can You Compare Two Cities’ CPI Numbers to See Which City Is More Expensive?

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BSF-0224 · Behind the Numbers · Evidence as of: 1982

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The Fact

No. BLS says CPI index levels for different areas cannot be used to compare which area has a higher cost of living. The indexes measure price change from each series’ base, not absolute price levels across places.

What This Means

A city with a CPI index of 200 is not necessarily more expensive than a city with an index of 150.

Sources

  1. U.S. Bureau of Labor Statistics, CPI Concepts. https://www.bls.gov/opub/hom/cpi/concepts.htm
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