Vol. III · No. 47 · Q1 2026 EditionUpdated Weekly · ECB FX

WorthOf

A global ledger of salary, tax & the price of living

Methodology · § 02

How the Cost of Living Index Is Built

A weighted basket of seven categories, anchored to New York City = 100.

1. The basket

Each city's index is the weighted average of seven category sub-indices. Weights reflect typical household spending in OECD-member metro areas.

ComponentWeightShare
Rent38%
Food & groceries22%
Utilities12%
Transport8%
Leisure8%
Other7%
Healthcare5%
Total100%

2. Baseline

New York City = 100 (Numbeo convention). A city with an index of 72 is 28% cheaper than NYC on the same basket; an index of 134 is 34% more expensive.

3. Cross-validation

Monthly Numbeo crowdsourced data is checked against Eurostat HICP (Harmonised Index of Consumer Prices) on a quarterly basis. If the divergence between the two exceeds 5% for any sub-index, the city is flagged for manual review before publication.

4. Limitations

  • Numbeo input is crowdsourced — small cities can have thin samples.
  • Urban bias: figures describe city-centre living, not rural or suburban.
  • Sub-index weights are global defaults and do not adjust for local consumption patterns (e.g. car-dependent vs transit cities).
  • Rents reflect listings on international portals; informal-market rents are not captured.