The average income is frequently used as an indicator of the standard of living. The Standard of Living is not, however, just based on Monthly Income. Additionally, important factors include the Cost of Living Index and the local Purchasing Power Index.
We need to understand the fundamental ideas of “living standard,” “Cost of Living Index,” and “local Purchasing Power Index” before we are able to have discussions about it.
The standard of living is a measure of how well people live.
As an example, consider Norway, which has economic strength, significant social welfare, access to first-rate healthcare and education, and an exceptionally high standard of living.
In a different way, many developing nations have a low standard of living with high rates of hunger, illness, and poverty.
A number of factors can be analyzed to assess the standard of living, such as:
Income
Cost of living
Local Purchasing Power
Environment
Social safety and Security
Economic opportunity
And we have data regarding Local Purchasing Power Index, Monthly Salary, and Cost of Living Index. We will only use this data to calculate the Relative Standard of Living and the data will be visualized to generate knowledge that is insightful.
The Cost of Living Index is a measurement of how much it costs to maintain a particular level of living in a specific location. It is calculated by comparing a basket of goods and services’ expenses over time and in various places.
The local purchasing power index is a measurement of the total number of various goods and services that can actually be purchased in a particular geographic area for a specified quantity of money. For example, if a nation’s Local Purchasing Power is 120, it means that residents can purchase 20% more goods and services with the same amount of money.
Now, we’ll utilize these three elements to calculate the Relative Standard of Living for a certain region, so let’s get started.
for calculating Relative Standard of Living, we are using the following formula:
(Local purchasing power index / Cost of living index) * 100
The Relative Standard of Living is a useful indicator for analyzing various regions since it considers both the cost of living and local purchasing power.
Here is the Geographical Chart of Relative Standard of Living by Country
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Notes
- This analytical article is intended for research, education and knowledge sharing purposes only.
- Please note that the data used in this analysis may change over time.
Process is short
- I collected data from the World Bank Group
- To ensure accuracy, I used Python with Pandas and NumPy libraries for data cleaning and preprocessing.
- To create insightful visual presentations, we used a combination of Excel and Power BI and present it in Infogram.
- For Data Analysis we use Power query and Power Pivot in Excel.
- Strict quality checks were carried out at every stage of data processing to maintain data integrity and reliability.
- Collaborative efforts were undertaken with experts in the field to ensure the accuracy and relevance of the data and analyzes presented in this article.
For those interested in more information and research please visit My GitHub Profile and Analyse Info Web, where comprehensive data, Analysis, reports are available.
