When we say the cost of living has gone up, we mean that, looking broadly over a range of goods and services:

Question

Quizplus · Accepted Answer

When the cost of living goes up, it means that prices of goods and services have increased, so a dollar buys less than it used to before. This can happen due to many factors such as inflation, changes in supply and demand, changes in the economy, etc. It does not necessarily mean that our income has increased to match the cost of those goods.

When We Say the Cost of Living Has Gone Up