Cities with higher cost of living also experience higher rates of inflation.

Question

Quizplus · Accepted Answer

The cost of living and inflation are related but not directly proportional. Inflation refers to the rate at which the general level of prices for goods and services rises, eroding purchasing power. A city with a high cost of living doesn't necessarily experience higher inflation rates; inflation can vary based on numerous factors including economic policies, supply and demand, and external economic conditions.

Cities with Higher Cost of Living Also Experience Higher Rates